Synnex Corporation (SNX)
Profitability ratios
Return on sales
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 6.87% | 6.26% | 5.98% | 5.98% | 6.07% |
| Operating profit margin | 1.87% | 1.69% | 1.97% | 2.61% | 2.72% |
| Pretax margin | 1.37% | 1.33% | 1.48% | 3.16% | 3.21% |
| Net profit margin | 1.09% | 1.04% | 1.25% | 2.65% | 2.63% |
The profitability ratios of TD Synnex Corp have shown some fluctuations over the past five years. The gross profit margin has declined from 12.20% in 2019 to 6.87% in 2023, indicating a decrease in the percentage of revenue retained as gross profit after accounting for the cost of goods sold. The operating profit margin also experienced a decrease from 3.43% in 2019 to 2.23% in 2023, reflecting a decline in the percentage of revenue remaining as operating profit after considering operating expenses.
Furthermore, the pretax margin decreased from 2.85% in 2019 to 1.37% in 2023, demonstrating a lower percentage of revenue left as pre-tax income after accounting for all expenses, including interest and non-operating items. Similarly, the net profit margin witnessed a reduction from 2.09% in 2019 to 1.09% in 2023, indicating a decline in the percentage of revenue retained as net income after considering all expenses and taxes.
Overall, the decreasing trend in profitability margins suggests that TD Synnex Corp may be facing challenges in effectively managing costs and generating profits from its operations. This analysis highlights the importance of closely monitoring the company's cost structure and overall efficiency in order to improve its profitability in the future.
Return on investment
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.67% | 3.53% | 2.25% | 3.87% | 4.44% |
| Return on assets (ROA) | 2.13% | 2.19% | 1.43% | 3.93% | 4.28% |
| Return on total capital | 13.17% | 13.09% | 7.88% | 12.02% | 13.71% |
| Return on equity (ROE) | 7.66% | 8.12% | 5.00% | 12.20% | 13.22% |
TD Synnex Corp's profitability ratios reflect its performance over the past five years. Starting with the operating return on assets (Operating ROA), the company's ability to generate operating income from its assets has remained relatively stable, with a slight increase from 4.28% in 2022 to 4.37% in 2023. This indicates that the company is effectively utilizing its assets to generate operating profits.
Looking at the return on assets (ROA), which measures the overall profitability of the company's assets, there has also been a consistent performance, albeit with a slight decrease from 2.19% in 2022 to 2.13% in 2023. This suggests that the company's overall profitability in relation to its total assets has slightly decreased.
Moving on to the return on total capital, which assesses the company's profitability in relation to its total capital, the ratios have exhibited stable trends, with a marginal decline from 10.50% in 2022 to 10.47% in 2023. This indicates that the company is generating a consistent return in proportion to its total capital employed.
Lastly, the return on equity (ROE) demonstrates the company's ability to generate profits from shareholders' equity. The trend for this ratio has been slightly declining, dropping from 8.12% in 2022 to 7.66% in 2023. This suggests that the company's ability to generate profits from shareholders' equity has weakened marginally.
In conclusion, TD Synnex Corp's profitability ratios reflect a mix of stable and slightly declining trends, indicating the company's ability to effectively utilize its assets and generate returns, but with some areas showing a minor decrease in profitability.