Synnex Corporation (SNX)
Profitability ratios
Return on sales
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 6.81% | 6.87% | 6.26% | 5.98% | 5.98% |
| Operating profit margin | 2.04% | 1.87% | 1.69% | 1.97% | 2.61% |
| Pretax margin | 1.48% | 1.37% | 1.33% | 1.48% | 3.16% |
| Net profit margin | 1.18% | 1.09% | 1.04% | 1.25% | 2.65% |
Synnex Corporation's profitability ratios have shown mixed performance over the past five years. The gross profit margin has experienced a slight increase from 5.98% in November 30, 2020, to 6.81% in November 30, 2024, indicating the company's ability to control its production costs efficiently.
However, the operating profit margin exhibited volatility, decreasing from 2.61% in November 30, 2020, to 1.69% in November 30, 2022, and then showing a slight improvement to 2.04% in November 30, 2024. This suggests some challenges in managing operating expenses or generating consistent operating income.
Similarly, the pretax margin decreased from 3.16% in November 30, 2020, to 1.33% in November 30, 2022, before slightly increasing to 1.48% in November 30, 2024. This trend indicates fluctuations in pre-tax profitability, which could be affected by factors such as interest expenses, non-operating income, or taxes.
The net profit margin followed a similar pattern, declining from 2.65% in November 30, 2020, to 1.04% in November 30, 2022, before recovering slightly to 1.18% in November 30, 2024. This indicates that after-tax profitability was impacted by factors beyond operational efficiency, such as taxes and interest payments.
Overall, while the gross profit margin has improved, the operating, pre-tax, and net profit margins have shown fluctuating trends, suggesting that Synnex Corporation may need to focus on cost management and revenue generation strategies to enhance its overall profitability in the future.
Return on investment
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.94% | 3.67% | 3.53% | 2.25% | 3.87% |
| Return on assets (ROA) | 2.28% | 2.13% | 2.19% | 1.43% | 3.93% |
| Return on total capital | 14.86% | 13.17% | 13.09% | 7.88% | 12.02% |
| Return on equity (ROE) | 8.58% | 7.66% | 8.12% | 5.00% | 12.20% |
Based on the provided data, we can analyze the profitability ratios of Synnex Corporation as follows:
1. Operating Return on Assets (Operating ROA):
- In November 30, 2020, the Operating ROA was 3.87%, which declined to 2.25% by November 30, 2021, but then increased to 3.53% by November 30, 2022, and further improved to 3.67% by November 30, 2023, and finally to 3.94% by November 30, 2024. This ratio indicates the efficiency of the company in generating operating income from its assets.
2. Return on Assets (ROA):
- The ROA was 3.93% on November 30, 2020, decreased to 1.43% by November 30, 2021, and then improved to 2.19% by November 30, 2022, and slightly declined to 2.13% by November 30, 2023, and increased to 2.28% by November 30, 2024. ROA measures the company's ability to generate profit from its total assets.
3. Return on Total Capital:
- Synnex Corporation's Return on Total Capital was 12.02% on November 30, 2020, decreased to 7.88% by November 30, 2021, but then increased to 13.09% by November 30, 2022, further improved to 13.17% by November 30, 2023, and reached 14.86% by November 30, 2024. This ratio evaluates the company's profitability in relation to its total invested capital.
4. Return on Equity (ROE):
- ROE was 12.20% on November 30, 2020, which declined to 5.00% by November 30, 2021. It then increased to 8.12% by November 30, 2022, slightly decreased to 7.66% by November 30, 2023, and finally increased to 8.58% by November 30, 2024. ROE measures the company's profitability from the perspective of shareholders' equity.
Overall, Synnex Corporation has shown varying levels of profitability over the years, with some ratios improving from 2021 to 2024, indicating the company's ability to generate returns for its shareholders and efficiently utilize its assets and capital.