Photronics Inc (PLAB)
Profitability ratios
Return on sales
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.36% | 37.60% | 34.56% | 24.76% | 22.11% |
| Operating profit margin | 25.49% | 28.30% | 24.89% | 14.02% | 10.50% |
| Pretax margin | 22.35% | 21.90% | 20.98% | 11.66% | 9.04% |
| Net profit margin | 15.04% | 14.03% | 13.95% | 8.22% | 5.55% |
Photronics Inc has shown a consistent improvement in its profitability ratios over the past five years. The gross profit margin has been relatively stable, ranging from 22.11% in 2020 to 37.60% in 2023, with a slight dip to 36.36% in 2024. This indicates the company's ability to effectively control its production costs and generate profits from its core operations.
The operating profit margin has exhibited a positive trend, increasing from 10.50% in 2020 to 28.30% in 2023, before dropping slightly to 25.49% in 2024. This suggests that Photronics Inc has been able to enhance operational efficiency and generate higher profits from its day-to-day activities.
The pretax margin and net profit margin have also shown a significant improvement over the years, reflecting the company's ability to manage its overall expenses and generate higher profits after accounting for taxes and other costs. The pretax margin increased from 9.04% in 2020 to 22.35% in 2024, while the net profit margin rose from 5.55% in 2020 to 15.04% in 2024.
Overall, the increasing trend in profitability ratios indicates that Photronics Inc has been successful in effectively managing its costs, improving operational efficiency, and generating higher profits over the years. This positive performance can be seen as a sign of the company's financial health and sound business strategies.
Return on investment
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.94% | 16.58% | 16.10% | 7.31% | 5.38% |
| Return on assets (ROA) | 7.63% | 8.22% | 9.03% | 4.28% | 2.85% |
| Return on total capital | 19.76% | 25.95% | 24.53% | 10.35% | 7.43% |
| Return on equity (ROE) | 11.66% | 12.87% | 14.29% | 6.73% | 4.20% |
Photronics Inc's profitability ratios have shown varying trends over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated, with a high of 16.58% in 2023 and a low of 5.38% in 2020. The ratio indicates the company's ability to generate profits from its operating assets.
2. Return on assets (ROA) has also varied, peaking at 9.03% in 2022 and hitting a low of 2.85% in 2020. This ratio reflects the company's overall profitability relative to its total assets.
3. Return on total capital has followed a similar pattern, with the highest value of 25.95% in 2023 and the lowest of 7.43% in 2020. This ratio measures the efficiency of the company in generating returns from both debt and equity capital.
4. Return on equity (ROE) has displayed a similar trend, with the highest value of 14.29% in 2022 and the lowest of 4.20% in 2020. ROE shows the profitability of the company from the perspective of its shareholders.
Overall, it is evident that Photronics Inc's profitability has experienced fluctuations over the years, reflecting the company's ability to efficiently utilize its assets and capital to generate returns for its stakeholders.