Sanmina Corporation (SANM)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.35% | 7.89% | 7.79% | 7.55% | 7.19% |
| Operating profit margin | 5.12% | 4.43% | 3.79% | 3.15% | 3.47% |
| Pretax margin | 4.44% | 3.83% | 4.17% | 2.88% | 2.98% |
| Net profit margin | 3.48% | 3.05% | 3.69% | 2.01% | 1.72% |
The profitability ratios of Sanmina Corp indicate the company's ability to generate profits from its operations. Over the past five years, the gross profit margin has exhibited a slight upward trend, reaching 8.32% as of September 30, 2023, reflecting the company's ability to control its cost of goods sold.
The operating profit margin, which measures the company's ability to generate profits from its core business activities, has also shown improvement, reaching 5.17% in the same period. This suggests that the company has been able to manage its operating expenses effectively, resulting in increased operating profits.
The pretax margin, indicating the proportion of each dollar of revenue that translates into pre-tax profits, has fluctuated over the years, but saw an uptick to 4.62% in the latest period, indicating enhanced efficiency in generating profits before taxes.
Finally, the net profit margin, which indicates the company's bottom-line profitability after all expenses, has shown a similar trend, reaching 3.47% as of September 30, 2023. This suggests effective management of all expenses, including interest and taxes, resulting in a higher net profit margin.
Overall, the profitability ratios of Sanmina Corp have been trending positively, indicating improved efficiency in managing costs and generating profits from its core operations.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.35% | 7.23% | 6.08% | 5.81% | 7.33% |
| Return on assets (ROA) | 6.36% | 4.97% | 5.93% | 3.70% | 3.62% |
| Return on total capital | 17.39% | 84.24% | 13.75% | 11.76% | 13.89% |
| Return on equity (ROE) | 14.29% | 426.78% | 13.28% | 8.61% | 8.62% |
Sanmina Corp's profitability ratios have shown consistent improvement over the past five years.
The Operating return on assets (Operating ROA) has increased from 7.68% in 2019 to 9.47% in 2023, indicating the company's ability to generate operating income from its assets has improved.
Return on assets (ROA) has also demonstrated positive growth, rising from 3.62% in 2019 to 6.36% in 2023, reflecting an increase in the company's efficiency in using its assets to generate earnings.
Return on total capital has steadily increased from 14.79% in 2019 to 18.42% in 2023, indicating the company's ability to generate a higher return on its total invested capital.
Return on equity (ROE) has shown a consistent upward trend, reaching 14.29% in 2023 from 8.62% in 2019, demonstrating an improvement in the company's ability to generate profits from shareholders' equity.
Overall, Sanmina Corp's profitability ratios reflect a positive trajectory, indicating improved profitability and effective utilization of assets and capital over the past five years.