Strategic Education Inc (STRA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 46.68% | 44.93% | 43.94% | 46.25% | 48.17% |
| Operating profit margin | 12.76% | 8.41% | 6.64% | 13.01% | 15.73% |
| Pretax margin | 13.23% | 8.89% | 6.53% | 6.77% | 11.09% |
| Net profit margin | 9.24% | 6.16% | 4.38% | 4.87% | 8.39% |
Strategic Education Inc's profitability ratios show varying trends over the years. The gross profit margin has decreased from 48.17% in 2020 to 46.25% in 2021, further dropping to 43.94% in 2022 before slightly recovering to 44.93% in 2023 and improving to 46.68% in 2024.
The operating profit margin followed a similar pattern, declining from 15.73% in 2020 to 13.01% in 2021, then significantly dropping to 6.64% in 2022. It then increased to 8.41% in 2023 and further improved to 12.76% in 2024.
The pretax margin also fluctuated, starting at 11.09% in 2020 and decreasing to 6.77% in 2021. It remained relatively stable in 2022 at 6.53%, then rose to 8.89% in 2023 and notably increased to 13.23% in 2024.
Lastly, the net profit margin had a similar trend to the other profitability ratios, decreasing from 8.39% in 2020 to 4.87% in 2021 and falling further to 4.38% in 2022. It then climbed to 6.16% in 2023 and significantly improved to 9.24% in 2024.
Overall, the company experienced fluctuations in profitability margins over the years, with the most recent year showing improvements across all margins. Continued monitoring of these ratios is essential to assess the company's financial performance and efficiency.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.59% | 4.49% | 3.27% | 6.39% | 7.04% |
| Return on assets (ROA) | 5.50% | 3.28% | 2.16% | 2.39% | 3.76% |
| Return on total capital | 9.46% | 6.85% | 4.52% | 6.45% | 7.75% |
| Return on equity (ROE) | 6.78% | 4.22% | 2.85% | 3.21% | 4.93% |
Strategic Education Inc's profitability ratios show varying trends over the past five years.
1. Operating return on assets (Operating ROA) decreased from 7.04% in 2020 to 3.27% in 2022 but slightly recovered to 4.49% in 2023 and further improved to 7.59% in 2024. This indicates that the company's operating income generated per dollar of assets has shown some volatility but ended on a positive note.
2. Return on assets (ROA) also followed a similar pattern, declining from 3.76% in 2020 to 2.16% in 2022, then increasing to 3.28% in 2023 and further to 5.50% in 2024. This suggests an improvement in the company's overall profitability in utilizing its total assets to generate net income.
3. Return on total capital declined from 7.75% in 2020 to 4.52% in 2022, but subsequently rose to 6.85% in 2023 and further to 9.46% in 2024. This metric reflects the return the company generates from all sources of capital, showcasing an upward trend towards the end of the period.
4. Return on equity (ROE) also demonstrated a decrease from 4.93% in 2020 to 2.85% in 2022, followed by an improvement to 4.22% in 2023 and further to 6.78% in 2024. ROE signifies the return on the shareholders' equity investment, and the increasing trend indicates better returns for the company's equity holders.
Overall, Strategic Education Inc's profitability ratios show a mix of fluctuations and improvements over the five-year period, with a general positive trend towards the later years, suggesting enhanced efficiency in utilizing assets and generating returns for its shareholders.