Plexus Corp (PLXS)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 4.64% | 4.50% | 4.73% | 4.55% | 4.53% |
| Operating profit margin | 2.30% | 2.31% | 2.58% | 2.23% | 2.20% |
| Pretax margin | 1.90% | 2.05% | 2.35% | 1.97% | 1.95% |
| Net profit margin | 1.64% | 1.79% | 2.03% | 1.71% | 1.68% |
To analyze Plexus Corp.'s profitability ratios, we'll focus on the gross profit margin, operating profit margin, pretax margin, and net profit margin for the years ending September 30, 2023, October 1, 2022, October 2, 2021, October 3, 2020, and September 28, 2019.
Gross Profit Margin:
The gross profit margin measures the percentage of revenue that exceeds the cost of goods sold. Plexus Corp.'s gross profit margin has fluctuated slightly over the past five years, ranging from 9.11% to 9.60%. The increase to 9.37% in 2023, compared to the previous year, indicates a slight improvement in the company's ability to generate profits before considering operating expenses.
Operating Profit Margin:
The operating profit margin represents the proportion of revenue that remains after deducting operating expenses. Plexus Corp.'s operating profit margin has also experienced fluctuations, with the latest figure of 5.20% showing an increase from the prior year. This suggests that the company's management of operating expenses has improved, leading to a higher operating profit margin.
Pretax Margin:
The pretax margin indicates the percentage of each dollar of revenue that translates to pre-tax profit. Plexus Corp.'s pretax margin has exhibited variability over the years, with the latest figure of 3.82% marking a decrease from the previous year. This indicates that while the company's operating efficiency has improved, factors such as interest expenses or non-operating losses may have impacted the pre-tax profitability.
Net Profit Margin:
The net profit margin measures the proportion of revenue that remains as net income after accounting for all expenses, including taxes. Plexus Corp.'s net profit margin has seen fluctuations, with the latest figure of 3.30% showing a decrease from the prior year. This suggests that while the company has been able to manage operating expenses more efficiently, factors such as taxes or non-operating items have influenced the final net profitability.
Overall, while Plexus Corp. has demonstrated some improvements in managing operating expenses and increasing the gross profit margin, there are indications of challenges impacting the pre-tax and net profit margins. Further analysis of the company's expenses, tax strategy, and non-operating items is necessary to better understand the dynamics driving these profitability ratios.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.90% | 5.25% | 7.16% | 6.70% | 7.10% |
| Return on assets (ROA) | 4.19% | 4.07% | 5.64% | 5.13% | 5.43% |
| Return on total capital | 12.12% | 11.63% | 14.03% | 11.87% | 12.42% |
| Return on equity (ROE) | 11.45% | 12.62% | 13.51% | 12.02% | 12.55% |
Plexus Corp.'s profitability ratios provide insight into its ability to generate profit relative to its assets and capital.
First, the operating return on assets (Operating ROA) measures the company's operating income generated per dollar of total assets. Plexus Corp.'s Operating ROA has shown a slight improvement from 5.31% in 2022 to 6.59% in 2023, indicating that the company has become more efficient in utilizing its assets to generate operating income.
Next, the return on assets (ROA) ratio shows the overall profitability of the company by measuring the net income generated per dollar of total assets. Plexus Corp.'s ROA has remained relatively stable, with a slight increase from 4.07% in 2022 to 4.19% in 2023, indicating that the company has been able to maintain its profitability relative to its total assets.
The return on total capital reflects the overall return generated for both debt and equity holders. Plexus Corp.'s return on total capital has shown an increasing trend, reaching 13.30% in 2023 from 11.57% in 2022, indicating that the company has been able to generate higher returns for its total invested capital.
Finally, the return on equity (ROE) measures the return generated for the shareholders' equity. Plexus Corp.'s ROE decreased from 12.62% in 2022 to 11.45% in 2023, showing a slight decrease in the return generated for the shareholders' equity.
Overall, Plexus Corp.'s profitability ratios demonstrate that the company has been able to maintain and slightly improve its profitability relative to its assets and capital, although there has been a slight decline in the return generated for the shareholders' equity.