ScanSource Inc (SCSC)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 13.44% | 13.26% | 12.65% | 12.07% | 11.84% | 11.67% | 11.90% | 11.89% | 11.86% | 11.87% | 11.85% | 12.13% | 12.08% | 12.03% | 11.90% | 11.42% | 11.13% | 11.21% | 10.91% | 11.17% |
| Operating profit margin | 2.80% | 2.71% | 2.64% | 2.79% | 2.90% | 2.88% | 3.13% | 3.36% | 3.59% | 3.58% | 3.58% | 3.50% | 3.46% | 3.45% | 3.16% | 2.77% | 1.95% | -2.56% | -2.87% | -2.67% |
| Pretax margin | 3.10% | 3.01% | 2.76% | 3.28% | 3.06% | 2.91% | 3.13% | 2.92% | 3.22% | 3.28% | 3.38% | 3.36% | 3.36% | 3.38% | 3.08% | 2.68% | 1.83% | -2.67% | -3.05% | -2.88% |
| Net profit margin | 2.35% | 2.27% | 2.08% | 2.49% | 2.36% | 2.31% | 2.45% | 2.18% | 2.37% | 2.39% | 2.48% | 2.51% | 2.52% | 2.71% | 2.49% | 1.37% | 0.34% | -7.84% | -7.85% | -6.63% |
The profitability ratios of ScanSource Inc. over the provided period reflect a generally stable yet gradually improving profit profile. Starting with gross profit margins, the data indicates a consistent upward trend from an initial 11.17% as of September 30, 2020, reaching a peak of approximately 13.44% by June 30, 2025. This improvement suggests an enhanced ability to control cost of goods sold or a favorable mix of sales contributing to higher gross profit relative to revenue.
Operating profit margins initially exhibited negative values in September 2020 and December 2020, at -2.67% and -2.87%, respectively. These figures improved markedly by June 30, 2021, turning positive at 1.95%. From that point onward, the operating margin maintained a relatively steady level, oscillating around 3.5%—notably reaching 3.58% by March 31, 2022, and maintaining similar levels through 2023. Although slightly declining in 2023 with some periods dropping below 3%, the operating margin remains positive, indicating a consistent ability to generate operating income from core operations, despite initial losses.
Pre-tax margins followed a similar pattern, starting in negative territory (-2.88% on September 30, 2020), but improving to positive figures by June 30, 2021, and remaining relatively stable around 3.0%, with minor fluctuations. This consistency points to a steady pre-tax profitability, with profit before taxes maintained at modest levels.
Net profit margins were negative early in the period, with -6.63% as of September 30, 2020. The company experienced a turnaround as net margins moved into positive territory by June 30, 2021, reaching approximately 2.49% at the end of 2021 and fluctuating slightly above 2% thereafter. Although the net profit margin remains modest, it indicates that the company is able to convert a small but consistent proportion of revenue into net income.
Overall, ScanSource Inc.'s profitability ratios demonstrate a trajectory of recovery and stabilization following initial losses. The pattern suggests improved operational efficiency, better control over costs, and a gradually expanding profit margin profile, reflected across gross, operating, pre-tax, and net margins, with most ratios remaining positive and relatively stable in recent periods.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.76% | 4.68% | 4.69% | 4.94% | 5.27% | 5.59% | 6.32% | 6.59% | 6.57% | 6.87% | 6.32% | 6.34% | 6.31% | 6.41% | 5.90% | 5.31% | 3.68% | -4.75% | -5.53% | -5.02% |
| Return on assets (ROA) | 4.01% | 3.92% | 3.70% | 4.40% | 4.29% | 4.47% | 4.95% | 4.28% | 4.34% | 4.59% | 4.38% | 4.54% | 4.58% | 5.03% | 4.64% | 2.63% | 0.65% | -14.54% | -15.12% | -12.46% |
| Return on total capital | 8.03% | 10.82% | 10.38% | 10.79% | 10.71% | 10.94% | 12.26% | 14.27% | 15.65% | 16.01% | 16.13% | 15.69% | 15.52% | 15.09% | 14.07% | 12.58% | 10.01% | -8.51% | -10.59% | -10.50% |
| Return on equity (ROE) | 7.89% | 7.49% | 6.99% | 8.54% | 8.34% | 8.45% | 9.25% | 8.87% | 9.92% | 10.35% | 10.81% | 10.98% | 11.01% | 11.47% | 10.69% | 5.99% | 1.48% | -33.33% | -35.41% | -32.18% |
The profitability ratios of ScanSource Inc. over the period under review exhibit significant fluctuations, revealing insights into the company's operational efficiency and return generation capabilities.
Starting with the Operating Return on Assets (Operating ROA), the data indicates a trajectory from negative values in 2020 to positive figures in 2021, reaching an optimal peak of approximately 6.87% in the first quarter of 2023. This improvement suggests an enhanced core operating efficiency following prior losses. However, subsequent quarters show a gradual decline, descending to approximately 4.69% by the end of 2024 and further trending downward to roughly 4.68% in the first quarter of 2025, signaling a possible reduction in operating effectiveness or challenges in asset utilization.
In terms of the general Return on Assets (ROA), the company experienced significant negative performance during 2020 and early 2021, with values near -15%. The trend shifted positively around mid-2021, ultimately stabilizing at just above 4.5% in 2022, maintaining a relatively steady level through 2023 and into 2024. A slight decrease is observed towards the latter part of 2024 and into early 2025, with figures declining to approximately 3.7%, reflecting a modest decline in overall asset profitability.
The Return on Total Capital emerges as the most volatile ratio among the profitability measures. It transitioned from negative territory in 2020 and early 2021 to positive peaks exceeding 16% in late 2021 and 2022, indicating periods of substantial return on invested capital. Nonetheless, the ratio demonstrates a declining trend in subsequent periods, falling to approximately 10.94% in early 2024 and further down to around 8% in mid-2025. This decline suggests diminishing efficiency in generating returns relative to total capital invested.
Return on Equity (ROE) shows the most pronounced variability, with substantial negative values during 2020 and early 2021, reflecting difficulties in delivering shareholder returns. The notable shift occurs in mid-2021 when ROE becomes positive, reaching nearly 11% in early 2022, then gradually tapering off over the subsequent periods. By September 2025, ROE stabilizes around 7.9%, indicating a recovery phase but still reflecting lower profitability compared to the peaks observed in 2021.
Overall, the profitability ratios depict a company that experienced a significant turnaround from losses in 2020 to periods of profitability stabilization from 2021 onward. However, the subsequent declining trend across these ratios suggests challenges in sustaining high profitability levels, potentially due to operational, market, or macroeconomic factors affecting core performance.