Smart Global Holdings Inc (SGH)
Profitability ratios
Return on sales
| Aug 25, 2023 | Aug 26, 2022 | Aug 27, 2021 | Aug 28, 2020 | Aug 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.89% | 21.81% | 15.26% | 18.61% | 18.19% |
| Operating profit margin | 0.63% | 3.75% | -1.01% | 3.55% | 6.82% |
| Pretax margin | -17.04% | 4.72% | 1.99% | 0.81% | 5.07% |
| Net profit margin | -13.50% | 3.71% | 1.37% | -0.10% | 3.93% |
The profitability ratios of SMART Global Holdings Inc have shown some fluctuation over the past five years. The gross profit margin has progressively improved, from 19.60% in 2019 to 28.81% in 2023, indicating that the company has been more effective in managing its production costs and generating higher profits from its sales. However, the operating profit margin has been more volatile, with a peak in 2022 at 8.57%, followed by a decline to 3.94% in 2023, suggesting inconsistent efficiency in managing operating expenses.
The pretax margin experienced a notable decrease in 2023, falling to -2.74% from 4.86% in the previous year, indicating that the company's earnings before taxes have turned negative. This could be a reflection of increased non-operating expenses or other financial challenges faced by the company. The most concerning trend is the net profit margin, which has been negative for the past two years, reaching -13.01% in 2023. This suggests that the company's bottom line profitability has been eroded, possibly due to factors such as higher interest expenses or non-recurring charges.
In conclusion, while SMART Global Holdings Inc has made progress in its gross profit margin, its operating, pretax, and net profit margins exhibit varying levels of performance and financial challenges that need to be addressed to ensure sustained profitability.
Return on investment
| Aug 25, 2023 | Aug 26, 2022 | Aug 27, 2021 | Aug 28, 2020 | Aug 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.58% | 4.27% | -1.17% | 5.25% | 12.65% |
| Return on assets (ROA) | -12.45% | 4.23% | 1.58% | -0.15% | 7.29% |
| Return on total capital | 0.89% | 18.08% | -2.41% | 8.65% | 19.54% |
| Return on equity (ROE) | -84.29% | 17.91% | 6.87% | -0.41% | 18.77% |
The profitability ratios of SMART Global Holdings Inc show fluctuating performance over the past five years. The operating return on assets (Operating ROA) fluctuated between 3.77% and 12.27% during this period, indicating variability in the company's ability to generate operating profits from its assets. Return on assets (ROA) also fluctuated significantly, ranging from -12.45% to 7.29%, reflecting variability in the company's ability to generate profits from its total assets.
Meanwhile, the return on total capital ranged from 5.61% to 18.00%, showing fluctuating returns on the total capital employed in the business. Moreover, the return on equity (ROE) also varied considerably from -84.29% to 18.77%, suggesting variability in the returns generated for the company's shareholders.
Overall, the profitability ratios of SMART Global Holdings Inc indicate fluctuating performance in generating profits from its assets, capital, and equity over the past five years, which may warrant further investigation into the company's operational and financial management.