Quidel Corporation (QDEL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | |
|---|---|---|---|---|
| Gross profit margin | 21.49% | 22.98% | 23.72% | 26.58% |
| Operating profit margin | 4.64% | 5.94% | 6.83% | 10.37% |
| Pretax margin | -0.97% | 0.68% | 2.15% | 5.64% |
| Net profit margin | -0.34% | 0.42% | 1.43% | 3.78% |
Quidel Corporation's profitability ratios have shown a declining trend over the past four quarters. The gross profit margin, which indicates the efficiency of the company in producing goods, decreased from 26.58% in March 2023 to 21.49% in December 2023. This suggests a decrease in the company's ability to generate profits from its core operations.
Similarly, the operating profit margin, which reflects the company's ability to manage operating expenses, declined from 10.37% in March 2023 to 4.64% in December 2023. This indicates a significant decrease in profitability at the operational level.
The pretax margin, a measure of the company's earnings before taxes, also experienced a downward trend, dropping from 5.64% in March 2023 to -0.97% in December 2023. This indicates that the company is facing challenges in generating profits before tax expenses.
Lastly, the net profit margin, which represents the company's profitability after all expenses have been deducted, decreased from 3.78% in March 2023 to -0.34% in December 2023. This decline suggests that the company's bottom line performance has been negatively impacted, resulting in lower net profits relative to revenue.
Overall, Quidel Corporation's profitability ratios indicate a declining trend, which may raise concerns about the company's ability to generate profits and manage costs effectively. Further analysis and investigation into the factors causing this decline may be necessary to address and improve the company's profitability in the future.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.62% | 2.17% | 2.53% | 3.67% |
| Return on assets (ROA) | -0.12% | 0.15% | 0.53% | 1.34% |
| Return on total capital | 2.78% | 3.73% | 4.32% | 6.46% |
| Return on equity (ROE) | -0.20% | 0.27% | 0.90% | 2.35% |
Quidel Corporation's profitability ratios paint a mixed picture over the four quarters of the year.
Firstly, the Operating return on assets (Operating ROA) shows a declining trend from 3.67% in March to 1.62% in December. This indicates that the company's ability to generate profits from its assets in its core operations has been gradually decreasing throughout the year.
Secondly, the Return on assets (ROA) is negative for the December quarter, indicating that the company has incurred a net loss relative to its total assets in that period. However, this ratio shows improvement over the year, moving from -0.12% in December to 1.34% in March.
Thirdly, the Return on total capital and Return on equity (ROE) ratios both demonstrate a similar declining trend across the quarters. While both ratios show positive values, they decrease steadily from 6.46% and 2.35%, respectively, in March, to 2.78% and -0.20% in December.
Overall, Quidel Corporation's profitability ratios suggest a decline in its ability to generate profits from its assets and capital over the year, indicating potential challenges in its operational performance and financial health. Further analysis of the underlying factors driving these ratios would be necessary to fully understand the company's financial position and future prospects.