Skyline Corporation (SKY)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | — | 23.99% | 31.41% | 26.69% | 20.25% |
| Operating profit margin | — | 8.65% | 19.88% | 15.08% | 7.65% |
| Pretax margin | — | 9.92% | 20.48% | 14.97% | 7.84% |
| Net profit margin | — | 7.24% | 15.42% | 11.24% | 5.98% |
Skyline Corporation's profitability ratios have shown varying trends over the years based on the provided data. The Gross Profit Margin, which reflects the proportion of revenue that exceeds the cost of goods sold, has experienced an overall increase from 20.25% in March 2021 to 31.41% in March 2023, before declining to 23.99% in March 2024.
The Operating Profit Margin, indicating the company's ability to generate profit from its core operations, has shown a significant improvement from 7.65% in March 2021 to 19.88% in March 2023, with a subsequent decrease to 8.65% in March 2024.
Similarly, the Pretax Margin, representing the proportion of earnings before taxes relative to total revenue, exhibited a positive trend, rising from 7.84% in March 2021 to 20.48% in March 2023, before dropping to 9.92% in March 2024.
The Net Profit Margin, which highlights the percentage of revenue that translates into net income, has also demonstrated an upward trajectory, growing from 5.98% in March 2021 to 15.42% in March 2023, before falling to 7.24% in March 2024.
Overall, Skyline Corporation has shown improvements in profitability metrics until March 2023, but experienced a decline in profitability margins in the following year. It is important for the company to assess the factors contributing to these fluctuations and implement strategies to sustain or enhance its profitability in the future.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | — | 9.11% | 33.17% | 26.96% | 11.85% |
| Return on assets (ROA) | — | 7.63% | 25.71% | 20.09% | 9.25% |
| Return on total capital | — | 12.32% | 42.03% | 40.35% | 19.13% |
| Return on equity (ROE) | — | 10.31% | 32.59% | 30.06% | 14.93% |
Skyline Corporation's profitability ratios provide insights into its performance over the years.
1. Operating return on assets (Operating ROA):
- Skyline's Operating ROA has shown a fluctuating trend, starting at 11.85% in March 2021, increasing to 33.17% by March 2023, and then declining to 9.11% by March 2024. This ratio indicates the company's ability to generate operating profits from its assets.
2. Return on assets (ROA):
- The ROA also exhibits a similar pattern, with a gradual increase from 9.25% in March 2021 to 25.71% by March 2023, followed by a decline to 7.63% in March 2024. ROA measures how effectively the company is utilizing its assets to generate profits.
3. Return on total capital:
- Skyline's Return on Total Capital has been volatile, reaching 42.03% in March 2023 from 19.13% in March 2021, before dropping to 12.32% by March 2024. This ratio highlights the company's efficiency in generating returns from both debt and equity capital invested.
4. Return on equity (ROE):
- The ROE has followed a similar trend, starting at 14.93% in March 2021, peaking at 32.59% by March 2023, and then decreasing to 10.31% by March 2024. ROE reflects the company's ability to generate profits for its shareholders from the equity invested.
Overall, the fluctuations in these profitability ratios suggest that Skyline Corporation has experienced periods of improved profitability followed by declines. Analyzing these ratios can help stakeholders assess the company's financial health and performance over time.