QuinStreet Inc (QNST)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 7.54% | 8.36% | 9.23% | 12.19% | 10.70% |
| Operating profit margin | -4.57% | -3.59% | -0.81% | 2.41% | 1.27% |
| Pretax margin | -4.95% | -3.68% | -0.99% | 5.07% | 3.81% |
| Net profit margin | -5.11% | -11.86% | -0.90% | 4.07% | 3.69% |
QuinStreet Inc's profitability ratios have fluctuated over the past five years. The gross profit margin has declined from 12.19% in 2021 to 7.54% in 2024, indicating a decrease in the percentage of revenue that remains after deducting the cost of goods sold.
The operating profit margin has also shown a downward trend from 2.41% in 2021 to -4.57% in 2024, suggesting that the company's operating expenses are consuming a larger portion of revenue, resulting in operating losses.
Furthermore, the pretax margin has decreased from 5.07% in 2021 to -4.95% in 2024, reflecting a negative trend in the company's profitability before considering taxes.
Similarly, the net profit margin has experienced considerable fluctuations, with a significant decrease from 4.07% in 2021 to -5.11% in 2024, indicating that the company's bottom line profitability has been impacted by various factors, including higher expenses relative to revenue.
Overall, these declining profitability ratios suggest that QuinStreet Inc may be facing challenges in effectively managing costs, generating revenue, and achieving sustainable profitability over the past five years.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -7.62% | -6.17% | -1.12% | 3.10% | 1.73% |
| Return on assets (ROA) | -8.50% | -20.43% | -1.25% | 5.24% | 5.05% |
| Return on total capital | -13.71% | -8.95% | -1.64% | 10.38% | 7.57% |
| Return on equity (ROE) | -14.45% | -29.97% | -1.83% | 7.98% | 7.07% |
QuinStreet Inc's profitability ratios have exhibited varying trends over the past five years.
1. Operating Return on Assets (Operating ROA): The Operating ROA has declined over the last three years, indicating a decrease in the company's ability to generate profits from its assets. The negative values in the last two years suggest that the company's core operations are not efficiently utilizing its assets to generate profits.
2. Return on Assets (ROA): The ROA has also shown a downward trend, with a significant decline in the last two years. The negative values for the last three years indicate that the company's overall profitability in relation to its total assets has deteriorated over time.
3. Return on Total Capital: The Return on Total Capital has also decreased over the past five years, with negative values in the last three years. This ratio reflects the company's ability to generate returns for both equity and debt holders, and the declining trend suggests inefficiency in utilizing the total capital.
4. Return on Equity (ROE): The ROE has followed a similar pattern of decline, displaying negative values in the last three years. This ratio indicates the return generated for the company's shareholders, and the decreasing trend implies a diminishing profitability on shareholders' equity.
Overall, the profitability ratios of QuinStreet Inc indicate challenges in generating profits from its assets, total capital, and equity over the past few years. The negative values in several ratios point towards operational inefficiencies and a need for strategic improvements to enhance overall profitability.