Perdoceo Education Corp (PRDO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 81.64% | 83.21% | 84.31% | 83.74% |
| Operating profit margin | 25.58% | 21.19% | 18.65% | 21.50% | 20.80% |
| Pretax margin | 29.57% | 27.06% | 19.31% | 21.51% | 21.36% |
| Net profit margin | 21.66% | 20.80% | 13.79% | 15.82% | 18.08% |
Perdoceo Education Corp's profitability ratios demonstrate a strong performance over the years, with consistently high margins.
1. Gross Profit Margin:
- The company's gross profit margin has been relatively stable, ranging from 81.64% to 100.00%.
- Perdoceo Education Corp has maintained a high level of gross profitability, indicating efficient cost management and pricing strategies.
2. Operating Profit Margin:
- The operating profit margin has shown positive trends, increasing from 18.65% in 2022 to 25.58% in 2024.
- This improvement suggests that the company has been effectively controlling its operating expenses while generating higher revenues.
3. Pretax Margin:
- The pretax margin has exhibited variability but generally increasing, reaching 29.57% in 2024.
- This metric reflects Perdoceo Education Corp's ability to generate profits before accounting for taxes, showcasing strong operational performance.
4. Net Profit Margin:
- The net profit margin has fluctuated but generally improved, rising from 13.79% in 2022 to 21.66% in 2024.
- The upward trend indicates that the company has been successful in managing not only its operating costs but also interest and taxes, resulting in enhanced bottom-line profitability.
Overall, Perdoceo Education Corp's profitability ratios reflect a sound financial performance, with a focus on driving efficiency and profitability across its operations.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.09% | 14.94% | 13.54% | 17.58% | 19.81% |
| Return on assets (ROA) | 11.93% | 14.66% | 10.01% | 12.94% | 17.22% |
| Return on total capital | 20.93% | 22.88% | 18.27% | 22.92% | 25.82% |
| Return on equity (ROE) | 15.38% | 17.55% | 13.21% | 16.86% | 22.35% |
Perdoceo Education Corp's profitability ratios have shown some fluctuations over the years based on the provided data. The Operating Return on Assets (Operating ROA) decreased from 19.81% in December 2020 to 13.54% in December 2022, before slightly rebounding to 14.09% by December 2024.
Similarly, the Return on Assets (ROA) declined from 17.22% in December 2020 to 10.01% in December 2022, but then increased to 11.93% by December 2024. This indicates that the company's overall profitability in generating earnings from its assets saw a downward trend initially but improved in the later years.
The Return on Total Capital decreased from 25.82% in December 2020 to 18.27% in December 2022, before rising to 20.93% by December 2024. This ratio reflects the efficiency in generating returns from all sources of capital, including debt and equity.
Lastly, the Return on Equity (ROE) exhibited a similar pattern, with a decline from 22.35% in December 2020 to 13.21% in December 2022, followed by an uptick to 15.38% by December 2024. ROE measures the profitability in relation to shareholders' equity, indicating how well the company is utilizing equity to generate profits.
Overall, despite some fluctuations, Perdoceo Education Corp's profitability ratios show a general trend of recovery and improvement in the later years after facing initial declines. It is essential for investors and stakeholders to closely monitor these ratios to assess the company's financial performance and efficiency in utilizing its assets and capital.