STAAR Surgical Company (STAA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 76.32% | 78.36% | 78.55% | 77.51% | 72.41% |
| Operating profit margin | -4.02% | 8.71% | 15.40% | 14.47% | 4.14% |
| Pretax margin | -2.88% | 10.45% | 16.11% | 13.58% | 5.06% |
| Net profit margin | -0.01% | 6.62% | 13.95% | 11.94% | 3.62% |
STAAR Surgical Company has shown a consistent improvement in its gross profit margin over the years, rising from 72.41% in 2020 to 78.36% in 2023 before slightly decreasing to 76.32% in 2024. The company's ability to generate profits from its core operations is reflected in its operating profit margin, which substantially increased from 4.14% in 2020 to 15.40% in 2022, although there was a decline to -4.02% in 2024.
The trend in pretax margin demonstrates the company's profitability before accounting for taxes, with a noticeable increase from 5.06% in 2020 to 16.11% in 2022, followed by a decline to -2.88% in 2024. STAAR Surgical Company's net profit margin, which represents the company's overall profitability, has also shown fluctuation over the years, reaching a high of 13.95% in 2022 but dropping to -0.01% in 2024, indicating a potential loss.
Overall, while the company has displayed strong gross profit margins and notable improvements in operating and pretax margins in certain years, the declining trends in profitability ratios, especially in the later years, warrant further investigation into the company's operational efficiency and financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2.48% | 5.75% | 10.55% | 9.64% | 2.63% |
| Return on assets (ROA) | -0.00% | 4.37% | 9.55% | 7.96% | 2.30% |
| Return on total capital | -3.17% | 7.28% | 13.18% | 12.89% | 3.43% |
| Return on equity (ROE) | -0.01% | 5.53% | 11.93% | 10.64% | 3.00% |
In analyzing the profitability ratios of STAAR Surgical Company, we observe the following trends:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has shown a positive increase over the years, starting from 2.63% in December 2020 to 10.55% in December 2022. However, it dipped to 5.75% in December 2023 before turning negative at -2.48% in December 2024.
2. Return on Assets (ROA):
- Similarly, the ROA witnessed a positive trend, with a gradual rise from 2.30% in December 2020 to 9.55% in December 2022. However, it dropped to 4.37% in December 2023 and reached 0.00% in December 2024.
3. Return on Total Capital:
- The Return on Total Capital experienced growth during the period under review, climbing from 3.43% in December 2020 to a peak of 13.18% in December 2022. Nevertheless, it declined to 7.28% in December 2023 and turned negative at -3.17% in December 2024.
4. Return on Equity (ROE):
- The ROE exhibited a positive trajectory, rising from 3.00% in December 2020 to 11.93% in December 2022. However, it decreased to 5.53% in December 2023 and fell into negative territory at -0.01% in December 2024.
Overall, while STAAR Surgical Company demonstrated improving profitability metrics in the earlier years, there was a noticeable deterioration in profitability performance by the end of the period covered, particularly reflected in negative returns on assets, total capital, and equity in December 2024. Further investigation into the company's financial management and operational efficiency may be warranted to address the declining profitability trends.