Progyny Inc (PGNY)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.73% | 21.87% | 21.24% | 22.38% | 20.31% |
| Operating profit margin | 5.79% | 5.69% | 2.96% | 6.45% | 2.42% |
| Pretax margin | 7.14% | 6.47% | 3.10% | 6.47% | 2.52% |
| Net profit margin | 4.66% | 5.68% | 3.85% | 13.13% | 13.47% |
Progyny Inc's profitability ratios have shown mixed performance over the past five years. The gross profit margin has fluctuated between 20.31% in 2020 to 22.38% in 2021, before settling at 21.73% in 2024. This indicates that the company is effectively managing its production costs.
The operating profit margin has shown a significant improvement from 2.42% in 2020 to 6.45% in 2021, but then decreased to 5.79% in 2024. This indicates that Progyny Inc has been able to control its operating expenses efficiently, resulting in higher profitability from its core operations.
Similarly, the pretax margin has varied from 2.52% in 2020 to 7.14% in 2024, showing notable volatility. This metric reflects the company's ability to generate profits before accounting for taxes, with a trend towards improvement in recent years.
On the other hand, the net profit margin has shown a declining trend from 13.47% in 2020 to 4.66% in 2024. This indicates that the company's bottom line profitability, after accounting for all expenses including taxes, has decreased over the years, possibly due to higher non-operating costs or taxes.
In conclusion, Progyny Inc has displayed mixed performance in terms of profitability ratios, with improvements in operating and pretax margins, while experiencing a decline in net profit margin over the past five years. Management may need to focus on controlling costs and maximizing operational efficiencies to ensure sustained profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.11% | 8.22% | 4.30% | 9.03% | 3.29% |
| Return on assets (ROA) | 8.95% | 8.20% | 5.59% | 18.37% | 18.30% |
| Return on total capital | 15.98% | 11.24% | 6.19% | 12.84% | 5.00% |
| Return on equity (ROE) | 12.87% | 11.21% | 8.05% | 26.12% | 27.83% |
Progyny Inc's profitability ratios show varying performance over the years.
1. Operating Return on Assets (Operating ROA): Progyny's Operating ROA has fluctuated between 3.29% in 2020 to a peak of 11.11% in 2024. This ratio indicates the company's ability to generate operating income from its assets, with a significant improvement in efficiency over the years.
2. Return on Assets (ROA): The general ROA trend for Progyny shows stability, with a slight increase from 18.30% in 2020 to 8.95% in 2024. This ratio highlights the company's overall ability to generate profit from its assets.
3. Return on Total Capital: Progyny's Return on Total Capital has shown an increasing trend, starting at 5.00% in 2020 and reaching 15.98% by 2024. This ratio reflects the efficiency of the company in generating returns from all sources of capital invested in the business.
4. Return on Equity (ROE): The ROE for Progyny experienced a decline from 27.83% in 2020 to 12.87% in 2024. This ratio measures the company's ability to generate profits from shareholders' equity, indicating a downward trend in shareholder value creation over the years.
Overall, Progyny's profitability ratios suggest improvements in operational efficiency and the utilization of capital, with some fluctuations in returns to equity holders. Further analysis of the company's financial and operational strategies may provide insights into these trends.