Qualcomm Incorporated (QCOM)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.21% | 55.70% | 57.84% | 57.51% | 60.67% |
| Operating profit margin | 25.85% | 21.74% | 35.88% | 29.16% | 26.58% |
| Pretax margin | 26.61% | 20.48% | 33.82% | 30.61% | 24.30% |
| Net profit margin | 26.03% | 20.19% | 29.27% | 26.94% | 22.09% |
Qualcomm Incorporated's profitability ratios have shown a generally positive trend over the past five years. The gross profit margin has fluctuated slightly but has remained relatively stable, indicating efficient management of production costs. The operating profit margin has shown some volatility, with a significant increase in 2022 followed by a slight decrease in 2023 and a subsequent increase in 2024, suggesting varying levels of operational efficiency.
The pretax margin has also exhibited fluctuations, reaching a peak in 2022 before declining slightly in 2023 and then increasing again in 2024. This indicates changes in the company's ability to generate profits before taxes. The net profit margin, reflecting the company's bottom line profitability, has shown a steady improvement over the years, with significant gains in 2022 and 2024. This suggests that Qualcomm has been effective in managing expenses and operational costs to increase its net profit margin.
Overall, Qualcomm's profitability ratios demonstrate a positive trajectory, with improvements in operational efficiency and profitability over the past five years. Continued focus on managing costs and driving revenue growth will be key for sustaining and enhancing profitability in the future.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.26% | 15.26% | 32.36% | 23.74% | 17.57% |
| Return on assets (ROA) | 18.39% | 14.17% | 26.39% | 21.93% | 14.60% |
| Return on total capital | 27.98% | 22.27% | 48.93% | 45.80% | 29.67% |
| Return on equity (ROE) | 38.60% | 33.51% | 71.81% | 90.88% | 85.54% |
Qualcomm Incorporated's profitability ratios have shown a positive trend over the past five years, indicating strong financial performance.
1. Operating return on assets (Operating ROA) has increased steadily from 17.57% in 2020 to 18.26% in 2024. This ratio measures a company's operating income generated per dollar of assets, showing Qualcomm's ability to generate profit from its operations.
2. Return on assets (ROA) has also displayed consistent improvement, reaching 18.39% in 2024 from 14.60% in 2020. This ratio reflects Qualcomm's overall efficiency in utilizing its assets to generate profit.
3. Return on total capital has shown significant growth, increasing from 29.67% in 2020 to 27.98% in 2024. This ratio indicates the overall return on both equity and debt capital invested in the company, demonstrating Qualcomm's ability to generate a return for all capital providers.
4. Return on equity (ROE) has exhibited a similar positive trend, rising from 85.54% in 2020 to 38.60% in 2024. This ratio highlights Qualcomm's ability to generate profit for its shareholders relative to the amount of equity invested.
Overall, Qualcomm's profitability ratios suggest that the company has been effective in managing its assets, capital, and equity to generate strong returns for its stakeholders.