Strategic Education Inc (STRA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.74% | 40.96% | 39.39% | 34.52% | 43.95% |
| Operating profit margin | 8.40% | 6.62% | 6.51% | 11.16% | 11.08% |
| Pretax margin | 8.87% | 6.51% | 6.75% | 11.62% | 12.41% |
| Net profit margin | 6.15% | 4.37% | 4.85% | 8.80% | 8.14% |
Strategic Education Inc's profitability ratios show fluctuations over the past five years. The gross profit margin has remained consistently high at 100% throughout the period, indicating effective cost management in generating revenue.
The operating profit margin has shown some variability, with an upward trend from 2019 to 2021, followed by a slight decline in 2022 and an increase in 2023. This suggests that the company's efficiency in controlling operating expenses has fluctuated over the years.
Similarly, the pretax margin has shown fluctuations, with a peak in 2019 followed by a decline in 2020 and subsequent moderate improvements in 2021 to 2023. This indicates the company's ability to manage expenses before accounting for taxes.
The net profit margin has also shown variability, with a peak in 2019 followed by a decline in 2020, and slight improvements in 2021 and 2023. This metric reflects the company's ability to generate net income after accounting for all expenses and taxes.
Overall, Strategic Education Inc's profitability ratios demonstrate a mix of stability and fluctuation in managing costs and generating profits over the past five years. Further analysis of the company's financial performance and business strategies may provide insights into the underlying factors driving these trends.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.49% | 3.27% | 3.21% | 4.76% | 6.18% |
| Return on assets (ROA) | 3.28% | 2.16% | 2.39% | 3.76% | 4.53% |
| Return on total capital | 5.56% | 4.07% | 3.98% | 5.79% | 7.56% |
| Return on equity (ROE) | 4.22% | 2.85% | 3.21% | 4.93% | 5.55% |
Over the five-year period from 2019 to 2023, Strategic Education Inc's profitability ratios show a mixed performance.
- Operating return on assets (Operating ROA) has fluctuated, with a peak of 7.40% in 2019 and a low of 3.42% in 2022. The ratio improved in 2023 to 5.32%, indicating the company's ability to generate operating income relative to its total assets.
- Return on assets (ROA) has also varied, ranging from 2.16% in 2022 to 4.53% in 2019. In 2023, ROA stood at 3.28%, reflecting the company's overall profitability in relation to its total assets.
- Return on total capital has shown a similar pattern, with a high of 9.06% in 2019 and a low of 4.26% in 2022. The ratio improved to 6.60% in 2023, demonstrating the company's ability to generate returns on both equity and debt capital.
- Return on equity (ROE) has fluctuated as well, reaching a peak of 5.55% in 2019 and a low of 2.85% in 2022. In 2023, ROE was 4.22%, indicating the company's profitability specifically in relation to its equity shareholders.
Overall, while there have been fluctuations in the profitability ratios of Strategic Education Inc, the company has shown the ability to generate returns on its assets, capital, and equity over the five-year period analyzed. Going forward, monitoring these ratios will be crucial in assessing the company's financial performance and profitability.