Seagate Technology PLC (STX)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.18% | 23.45% | 18.30% | 29.75% | 27.31% |
| Operating profit margin | 20.78% | 6.90% | -4.63% | 16.77% | 13.97% |
| Pretax margin | 16.63% | 6.79% | -6.72% | 14.40% | 12.62% |
| Net profit margin | 16.15% | 5.11% | -7.16% | 14.14% | 12.30% |
The analysis of Seagate Technology PLC's profitability ratios over the period from June 2021 to June 2025 reveals notable fluctuations and trends, indicating periods of both improvement and challenge.
Gross profit margin, which reflects the company's efficiency in managing production costs relative to sales, shows an upward trend from 27.31% in June 2021 to a peak of 29.75% in June 2022. However, this margin declines sharply to 18.30% in June 2023, indicating increased cost pressures or pricing challenges during that period. Subsequent recovery is observed with a rise to 23.45% in June 2024, culminating in a significant increase to 35.18% in June 2025, suggesting substantial improvements in gross profitability.
Operating profit margin illustrates a similar pattern, beginning at 13.97% in June 2021 and reaching a high of 16.77% in June 2022. The margin then deteriorates markedly to a negative -4.63% in June 2023, indicating operational losses possibly driven by increased expenses, pricing pressures, or operational inefficiencies. There is a rebound with a positive 6.90% in June 2024, and further improvement to 20.78% in June 2025, signaling a strong recovery in operating efficiency and margin management.
Pretax margin, which measures profitability before tax considerations, follows the same trend: from 12.62% in June 2021 to 14.40% in June 2022, then dropping sharply to -6.72% in June 2023. The subsequent recovery to 6.79% in June 2024 and a substantial 16.63% in June 2025 indicates renewed operational strength and better management of pre-tax profitability.
Net profit margin, reflecting the overall bottom-line profitability after all expenses, mirrors these movements. It was 12.30% in June 2021, increased to 14.14% in June 2022, and then declined to -7.16% in June 2023. The margin improved significantly to 5.11% in June 2024 and further to 16.15% in June 2025, denoting a robust turnaround in net profitability driven by operational gains and effective cost management.
Overall, Seagate's profitability ratios demonstrate a period of stress around 2023, characterized by negative operating, pretax, and net margins, likely due to adverse market conditions or operational challenges. The subsequent years indicate a strong recovery, with notable improvements in margins suggesting enhanced operational efficiency, better cost controls, and favorable market dynamics contributing to the company’s regained profitability.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 23.56% | 5.84% | -4.53% | 21.86% | 17.20% |
| Return on assets (ROA) | 18.31% | 4.33% | -7.00% | 18.44% | 15.15% |
| Return on total capital | — | — | — | 1,796.33% | 237.72% |
| Return on equity (ROE) | — | — | — | 1,512.84% | 208.24% |
The profitability ratios of Seagate Technology PLC over the specified periods demonstrate significant fluctuations, reflecting the company's operational performance and financial leverage.
The Operating Return on Assets (Operating ROA) exhibited an upward trend from 17.20% as of June 30, 2021, to a peak of 21.86% on June 30, 2022, indicating improved efficiency in generating operating income from the company's assets during this period. However, a notable decline occurred in the subsequent year, with the ratio turning negative at -4.53% by June 30, 2023, signaling a downturn in operating profitability—likely attributable to increased operating expenses, revenue declines, or both. The positive recovery in the fiscal year ending June 30, 2024, to 5.84% suggests some operational improvement, though it remains below the 2021 levels.
The Return on Assets (ROA), which accounts for net income relative to total assets, followed a similar pattern. It increased from 15.15% in 2021 to 18.44% in 2022, reflecting higher net income efficiency. The subsequent plunge to -7.00% in 2023 indicates that the company faced net losses or diminished net income relative to its assets during that period. The partial recovery to 4.33% in 2024 underscores an improvement in net profitability, although the ratio remains modest compared to previous years.
The Return on Total Capital (>2021 and 2022) reveals an anomalously high figure of 237.72% in 2021 and a substantial escalation to 1,796.33% in 2022. Such extraordinarily high ratios are indicative of exceptionally high leverage or non-recurring gains, which can distort the measure of true operational efficiency. The absence of data for subsequent years prevents further analysis but suggests that these ratios, when considered in context, must be interpreted cautiously.
Return on Equity (ROE) shows a similar pattern, with a remarkable increase from 208.24% in 2021 to 1,512.84% in 2022. These figures imply that the company achieved very high returns for its shareholders during these years, likely driven by leverage or extraordinary income. Again, the lack of data beyond 2022 limits the assessment of ongoing profitability.
In summary, Seagate Technology PLC experienced strong profitability indicators in 2021 and 2022, followed by significant downturns in 2023, with partial recoveries thereafter. The extreme ratios in 2021 and 2022 suggest the influence of high leverage or extraordinary items, and while recent figures show some positive signs, overall profitability remains variable and requires further context for accurate interpretation.