Qorvo Inc (QRVO)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.49% | 36.33% | 49.21% | 46.91% | 40.81% |
| Operating profit margin | 2.43% | 5.13% | 26.39% | 22.58% | 13.07% |
| Pretax margin | 1.95% | 3.49% | 25.42% | 20.11% | 12.20% |
| Net profit margin | -1.87% | 2.89% | 22.24% | 18.27% | 10.32% |
Qorvo Inc's profitability ratios show varying trends over the past five years. The gross profit margin has fluctuated, with a significant decline in 2023 followed by a recovery in 2024. This indicates some volatility in the company's ability to generate profits from its core operations.
The operating profit margin has also shown fluctuations, with a notable decrease in 2024 compared to the previous years. This suggests that the company's operating efficiency might have been impacted, leading to lower profitability at the operating level.
Similarly, the pretax margin has experienced fluctuations, albeit with a decreasing trend in 2024. This implies that Qorvo's profitability before accounting for taxes has been impacted, possibly due to factors such as rising expenses or pricing pressures in the industry.
The net profit margin, reflecting the company's bottom-line profitability, has shown a decline in 2024, falling into negative territory. This indicates that Qorvo Inc incurred losses after accounting for all expenses, including taxes. It may be crucial for the company to address underlying issues affecting its net profitability and strive for sustainable growth in the future.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.40% | 2.74% | 16.33% | 12.55% | 6.45% |
| Return on assets (ROA) | -1.07% | 1.54% | 13.76% | 10.16% | 5.10% |
| Return on total capital | 4.02% | 3.24% | 18.85% | 19.06% | 10.61% |
| Return on equity (ROE) | -1.98% | 2.64% | 22.69% | 15.85% | 7.79% |
1. Operating return on assets (Operating ROA) has shown a decreasing trend from 16.33% in 2022 to 1.40% in 2024. This indicates that Qorvo Inc's ability to generate profits from its assets through operations has declined over the years.
2. Return on assets (ROA) has fluctuated, with a negative ROA of -1.07% in 2024, indicating that the company is not generating profits from its total assets during that period. This is a concerning trend compared to the positive ROAs in the previous years.
3. Return on total capital has also shown variability, with a peak of 19.06% in 2021 and a dip to 4.02% in 2024. This ratio measures the efficiency of the company in generating returns from both equity and debt capital invested, reflecting fluctuations in profitability.
4. Return on equity (ROE) has shown a volatile pattern, reaching a high of 22.69% in 2022 and dropping to -1.98% in 2024. This indicates that Qorvo Inc's profitability for shareholders has been inconsistent over the years, with significant fluctuations in returns on equity.
Overall, the profitability ratios of Qorvo Inc suggest fluctuating profitability and efficiency in utilizing assets and capital to generate returns for both the company and its shareholders. Special attention should be given to the factors influencing these ratios to improve profitability and ensure sustainable growth in the future.