Spire Inc (SR)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 88.08% | 88.47% | 87.26% | 98.32% | -15.82% |
| Operating profit margin | 18.83% | 16.87% | 19.64% | 21.15% | 11.79% |
| Pretax margin | 11.94% | 10.33% | 13.46% | 15.98% | 5.77% |
| Net profit margin | 9.68% | 8.77% | 10.62% | 12.76% | 5.06% |
The profitability ratios of Spire Inc show fluctuations over the past five years. The gross profit margin has remained consistently high, ranging between 87.26% and 88.47%, indicating efficient cost management in generating revenue.
However, the operating profit margin has shown some variability, with a slight increase from 16.87% in 2023 to 18.83% in 2024. This suggests that the company has been able to control its operating expenses effectively while generating profits from its core business operations.
Similarly, the pretax margin has fluctuated over the years, ranging from 10.33% to 15.98%. This ratio reflects Spire Inc's ability to generate profits before accounting for taxes, indicating the company's operational efficiency and financial health.
The net profit margin, a key indicator of bottom-line profitability, has also fluctuated, ranging from 8.77% in 2023 to 9.68% in 2024. This ratio reflects the company's ability to translate its revenues into net profits after all expenses, including taxes.
Overall, while the gross profit margin has been consistently strong, the fluctuations in operating profit margin, pretax margin, and net profit margin suggest that Spire Inc may have experienced some challenges in managing operating expenses and taxes efficiently over the past five years. Further analysis would be needed to understand the underlying reasons for these fluctuations and their potential implications for the company's financial performance and sustainability.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.50% | 4.06% | 4.05% | 4.81% | 2.50% |
| Return on assets (ROA) | 2.31% | 2.11% | 2.19% | 2.90% | 1.08% |
| Return on total capital | 7.36% | 6.83% | 6.92% | 7.98% | 4.18% |
| Return on equity (ROE) | 7.76% | 7.46% | 7.83% | 10.22% | 3.51% |
Spire Inc's profitability ratios show a generally positive trend over the past five years. Starting with the Operating return on assets (Operating ROA), the company's performance has been quite stable, ranging between 4.05% to 4.81%, indicating efficient utilization of its assets to generate operating income. The consistent performance is a good sign of operational efficiency.
Moving on to the Return on assets (ROA), Spire Inc's ability to generate profits from its total assets has also shown improvement over the years, with the ratio increasing from 1.08% in 2020 to 2.31% in 2024. This indicates that the company has been more effective in generating profits relative to its asset base.
The Return on total capital ratio reflects how effectively Spire Inc is generating returns for both debt and equity holders. The trend here has also been positive, with an increase from 4.18% in 2020 to 7.36% in 2024. This suggests that the company has been successful in creating value for its investors by efficiently utilizing both debt and equity capital.
Finally, the Return on equity (ROE) metric measures the profitability for shareholders, and Spire Inc has shown consistent growth in this area as well. The ROE has increased from 3.51% in 2020 to 7.76% in 2024, indicating that the company has been delivering higher returns to its equity investors.
Overall, the profitability ratios of Spire Inc demonstrate a positive trend over the years, reflecting the company's improving operational efficiency and ability to generate returns for its investors.