ScanSource Inc (SCSC)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.20% | 11.93% | 12.11% | 11.16% | 11.72% |
| Operating profit margin | 2.76% | 3.61% | 3.47% | 1.96% | -2.14% |
| Pretax margin | 3.05% | 3.28% | 3.37% | 0.73% | -6.10% |
| Net profit margin | 2.36% | 2.38% | 2.52% | 0.34% | -6.35% |
ScanSource Inc has demonstrated fairly consistent gross profit margins over the past five years, ranging from 11.16% to 12.20%. This indicates the company's ability to manage its production costs effectively.
In terms of operating profit margin, the company experienced fluctuations with a high of 3.61% in 2023 and a low of -2.14% in 2020. The positive trend in recent years suggests improved operational efficiency.
Pretax margin has also shown variability, with a low of -6.10% in 2020 and a high of 3.37% in 2022. This metric reflects the company's ability to control operating expenses and generate income before taxes.
The net profit margin, which represents the company's bottom line profitability, shows a similar trend to the pretax margin. Despite negative margins in 2020 and 2021, ScanSource Inc has been able to turn profitability around in the following years, with a net profit margin of 2.36% in 2024.
Overall, ScanSource Inc has shown improvements in its profitability ratios in recent years, indicating better cost management and operational efficiency.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.08% | 6.57% | 6.31% | 3.68% | -3.84% |
| Return on assets (ROA) | 4.33% | 4.34% | 4.58% | 0.65% | -11.39% |
| Return on total capital | 8.52% | 13.66% | 13.46% | 3.45% | -21.06% |
| Return on equity (ROE) | 8.34% | 9.92% | 11.01% | 1.48% | -28.40% |
ScanSource Inc's profitability ratios show a fluctuating trend over the past five years. The operating return on assets (Operating ROA) has decreased from 6.57% in 2023 to 5.08% in 2024, indicating a decline in the company's ability to generate operating income from its assets. However, it remained positive, which is a positive sign.
Similarly, the overall return on assets (ROA) has been relatively stable around 4-5% in the last three years, with a significant improvement from negative values in the previous years. This suggests that ScanSource has been able to generate modest returns on its total assets.
The return on total capital has shown a similar trend, with a notable decrease from 13.66% in 2023 to 8.52% in 2024. This implies that the company's efficiency in generating profits from its total capital has declined in the most recent year.
The return on equity (ROE) has also fluctuated over the period, ranging from a negative value in 2020 to positive values in the subsequent years. It indicates the company's ability to generate returns for its shareholders, with an improvement in 2024 compared to the previous year.
In summary, while ScanSource's profitability ratios have shown some instability, the company has managed to generate positive returns on assets and equity in recent years, although there is room for improvement in efficiently utilizing its assets and capital to enhance profitability.