Qualcomm Incorporated (QCOM)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 55.70% | 57.84% | 57.51% | 60.67% | 64.57% |
| Operating profit margin | 21.74% | 35.88% | 29.16% | 26.58% | 31.59% |
| Pretax margin | 20.48% | 33.82% | 30.61% | 24.30% | 30.82% |
| Net profit margin | 20.19% | 29.27% | 26.94% | 22.09% | 18.07% |
Qualcomm Incorporated's profitability ratios have shown fluctuations over the past five years. The gross profit margin, which indicates the company's ability to generate revenue after accounting for the cost of goods sold, has declined steadily from 64.57% in 2019 to 55.70% in 2023. This may suggest an increase in production costs or pricing pressures.
The operating profit margin, reflecting the company's efficiency in managing operating expenses, peaked at 35.88% in 2022 before dropping to 21.74% in 2023. This decrease indicates a potential rise in operating expenses relative to revenue, which could impact overall profitability.
The pretax margin, a measure of the company's profitability before accounting for taxes, has fluctuated over the years, reaching its highest point of 33.82% in 2022 and declining to 20.48% in 2023. This may be a result of changes in revenue, expenses, or tax implications.
The net profit margin, which represents the company's bottom-line profitability after all expenses have been accounted for, has shown an overall upward trend, increasing from 18.07% in 2019 to 20.19% in 2023. This indicates that Qualcomm has been able to improve its profitability relative to revenue over the years, though recent fluctuations suggest the need for continued monitoring and analysis.
Overall, Qualcomm's profitability ratios demonstrate a mixed performance, with varying trends across different margins. Further analysis of the underlying factors driving these changes would be necessary to assess the company's financial health and performance accurately.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.26% | 32.36% | 23.74% | 17.57% | 23.26% |
| Return on assets (ROA) | 14.17% | 26.39% | 21.93% | 14.60% | 13.31% |
| Return on total capital | 22.27% | 48.93% | 45.80% | 29.67% | 44.19% |
| Return on equity (ROE) | 33.51% | 71.81% | 90.88% | 85.54% | 89.35% |
Qualcomm Incorporated's profitability ratios show a fluctuating trend over the past five years.
1. Operating return on assets (Operating ROA) has seen a decline from 32.36% in 2022 to 15.26% in 2023. This suggests that the company's ability to generate operating income from its assets has decreased significantly in the most recent year.
2. Return on assets (ROA) has also displayed some variability, ranging from a low of 13.31% in 2019 to a high of 26.39% in 2022. In 2023, the ROA stands at 14.17%, indicating a moderate return on the company's total assets.
3. Return on total capital has shown a similar fluctuating pattern, with a significant drop from 48.93% in 2022 to 22.27% in 2023. This ratio reflects the company's ability to generate profits from both debt and equity capital invested.
4. Return on equity (ROE) has ranged from a low of 33.51% in 2019 to a high of 90.88% in 2021. In 2023, the ROE is at 71.81%, indicating the company's ability to generate a return for its shareholders.
Overall, Qualcomm's profitability ratios exhibit variability over the years, suggesting that the company's profitability performance may be impacted by various internal and external factors. It is essential for stakeholders to monitor these ratios closely to assess the company's financial health and performance accurately.