Seagate Technology PLC (STX)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.04% | 10.14% | 24.76% | 22.26% | 22.04% |
| Operating profit margin | 7.30% | -4.63% | 16.77% | 13.97% | 12.37% |
| Pretax margin | 7.19% | -6.72% | 14.40% | 12.62% | 9.82% |
| Net profit margin | 5.41% | -7.16% | 14.14% | 12.30% | 9.55% |
Seagate Technology PLC's profitability ratios have shown fluctuations over the past five years. The gross profit margin, which indicates the efficiency of the company's production process, decreased slightly from 24.76% in 2022 to 12.04% in 2024. This decline may suggest changes in production costs or pricing strategies.
The operating profit margin, reflecting the company's ability to generate profits from its core operations, improved significantly from -4.63% in 2023 to 7.30% in 2024. This positive trend indicates better operational efficiency and cost management.
The pretax margin, which represents the proportion of operating income before taxes, also showed improvement over the years, rising from -6.72% in 2023 to 7.19% in 2024. This suggests that Seagate Technology PLC has been effectively managing its expenses and optimizing its tax obligations.
Lastly, the net profit margin, a key indicator of overall profitability, increased from -7.16% in 2023 to 5.41% in 2024. This improvement highlights the company's ability to generate profits after accounting for all expenses, including taxes and interest.
Overall, Seagate Technology PLC has demonstrated a positive trend in profitability ratios, with improvements in operating efficiency and overall profitability over the past five years.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.84% | -4.53% | 21.86% | 17.20% | 14.56% |
| Return on assets (ROA) | 4.33% | -7.00% | 18.44% | 15.15% | 11.24% |
| Return on total capital | 20.98% | -4.37% | 37.28% | 28.38% | 20.75% |
| Return on equity (ROE) | — | — | 1,512.84% | 208.24% | 56.18% |
1. Operating Return on Assets (Operating ROA):
- In the fiscal year ending June 30, 2024, Seagate Technology PLC's operating return on assets was 5.84%, a significant improvement from the negative figure of -4.53% in the previous year.
- This ratio indicates that the company generated approximately 5.84 cents of operating income for every dollar of assets employed during the year.
2. Return on Assets (ROA):
- The return on assets for the same period was 4.33%, showing an improvement from the negative figure of -7.00% in the previous year.
- This ratio illustrates that Seagate Technology generated 4.33 cents of net income for each dollar of assets during the year.
3. Return on Total Capital:
- Seagate Technology's return on total capital in the latest fiscal year stood at 20.98%, a notable increase from the negative return of -4.37% in the prior year.
- This metric shows the company's ability to generate earnings in proportion to the total capital invested in the business, reflecting a positive trend in capital efficiency.
4. Return on Equity (ROE):
- While data for ROE is missing for the recent year, in fiscal year 2022, Seagate Technology's return on equity was exceptionally high at 1,512.84%.
- This indicates that the company generated significant profits for each dollar of shareholders' equity, although such very high values might raise questions about sustainability and potential underlying factors.
Overall, Seagate Technology PLC has shown improvements in its profitability ratios in the latest fiscal year as indicated by positive returns in key measures when compared to the previous year. The company has managed to enhance its operating efficiency, asset utilization, and overall capital profitability, suggesting a positive trend in its financial performance.