Seagate Technology PLC (STX)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 35.18% | 33.79% | 31.75% | 28.92% | 23.45% | 19.79% | 17.52% | 14.96% | 18.30% | 21.47% | 24.52% | 28.31% | 29.75% | 29.84% | 29.47% | 28.54% | 27.31% | 26.50% | 26.59% | 27.01% |
| Operating profit margin | 20.78% | 19.12% | 16.74% | 13.50% | 6.85% | 2.62% | -4.54% | -8.50% | -4.63% | -0.10% | 7.87% | 13.95% | 16.77% | 17.45% | 17.19% | 15.91% | 13.97% | 12.29% | 12.21% | 12.47% |
| Pretax margin | 16.63% | 18.26% | 15.71% | 12.50% | 6.79% | -2.84% | -9.83% | -9.85% | -6.72% | -1.55% | 6.64% | 11.09% | 14.40% | 15.73% | 15.72% | 14.46% | 12.62% | 9.93% | 9.93% | 10.30% |
| Net profit margin | 16.15% | 17.49% | 14.67% | 11.34% | 5.11% | -4.31% | -11.25% | -10.91% | -7.16% | -1.91% | 6.61% | 10.89% | 14.14% | 15.40% | 15.35% | 14.08% | 12.30% | 9.80% | 9.72% | 10.02% |
The profitability ratios of Seagate Technology PLC over the analyzed period reveal significant fluctuations across different metrics, reflecting variability in the company's operational efficiency and profitability standing.
Gross Profit Margin: The gross profit margin exhibits an overall declining trend from a high of 28.54% on September 30, 2021, to a low of 14.96% as of September 30, 2023. Although there are periods of recovery, notably in the post-2023 quarter, recent data indicates a resurgence, with margins rising to 31.75% by December 2024 and further to 35.18% by June 2025. This pattern suggests initial compression in gross margins, possibly due to increased costs or competitive pressures, followed by a notable improvement indicating better cost management or improved pricing strategies.
Operating Profit Margin: The operating profit margin demonstrates a decline from a peak of 17.19% in December 2021 to negative territory starting with -0.10% in March 2023. Several quarters from 2022 onward reveal negative operating margins, with the worst in September 2023 at -8.50%. However, a recovery phase is evident from the second quarter of 2024, where margins turn positive again, reaching 16.74% by December 2024 and continuing to improve in 2025 to around 20.78%. These fluctuations suggest periods of operational challenges, followed by restructuring or strategic adjustments leading to improved operational efficiency.
Pretax Margin: The pretax margin mirrors the trends seen in operating margins, with a decrease from 15.72% in December 2021 to negative levels of -9.85% in September 2023. Similar to operating margins, there is a recovery observed from mid-2024 onwards, with pretax margins rising to 18.26% by March 2025. The negative pretax margins during 2022 and 2023 highlight periods of diminished profitability before recent improvement.
Net Profit Margin: The net profit margin follows a comparable pattern, declining from a high of 15.35% in December 2021 to negative margins of -11.25% in December 2023. A recovery is evident from 2024, with margins edging back into positive territory by the March 2024 quarter and reaching 17.49% in March 2025. This indicates that after periods of losses, the company has managed to return to profitability, potentially driven by improved gross margins, operational efficiencies, or cost control.
Summary:
Overall, Seagate's profitability ratios reflect a trajectory of volatility characterized by periods of margin compression and subsequent recoveries. The notable decline in gross, operating, pretax, and net profit margins during 2022-2023 likely corresponds to challenging market conditions, increased costs, or competitive pressures. The subsequent rebound in late 2023 and into 2024 signifies efforts to enhance efficiency, cost management, or favorable market developments. The recent increases across all profitability ratios point toward a positive outlook, contingent on sustaining these improvements.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 23.56% | 21.59% | 16.90% | 12.31% | 5.80% | 2.31% | -4.11% | -8.03% | -4.53% | -0.10% | 9.36% | 17.14% | 21.86% | 22.99% | 21.96% | 21.21% | 17.20% | 14.55% | 13.82% | 14.42% |
| Return on assets (ROA) | 18.31% | 19.75% | 14.81% | 10.34% | 4.33% | -3.80% | -10.18% | -10.31% | -7.00% | -2.02% | 7.86% | 13.38% | 18.44% | 20.28% | 19.61% | 18.77% | 15.15% | 11.60% | 11.01% | 11.59% |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | — | — | 1,755.96% | 495.01% | 393.73% | 307.49% | 239.78% | 249.59% | 120.10% | 67.16% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | 1,512.84% | 440.62% | 349.43% | 269.05% | 208.24% | 206.20% | 99.90% | 56.40% |
The analysis of Seagate Technology PLC’s profitability ratios over the specified period reveals significant fluctuations and trends indicative of the company's operational performance and strategic positioning.
Operating Return on Assets (Operating ROA):
From September 2020 through March 2022, the Operating ROA demonstrated a generally positive trend, rising from 14.42% to a peak of 22.99%, reflecting increasing efficiency in generating operating income from total assets. However, subsequent quarters reveal a marked decline, culminating in negative territories by March 2023 (-0.10%) and June 2023 (-4.53%), indicating a deterioration in operating profitability or potential asset base challenges. The trend shows partial recovery in subsequent periods, with positive values returning by March 2024 (2.31%) and further improvement through June 2024 (5.80%) to September 2024 (12.31%). This rebound suggests a return to more effective operational management or improved market conditions, leading towards an outlook of enhanced asset efficiency.
Return on Assets (ROA):
ROA experienced similar patterns, from a steady increase up to 20.28% in March 2022, followed by a downward shift into negative values by March 2023 (-2.02%) and extending into deeper negatives through June and September 2023. The negative trend persisted until December 2023 (-10.18%) but showed signs of recovery in early 2024, with a positive ROA of 4.33% by June 2024 and reaching 10.34% in September 2024. The upward trajectory continues into March 2025, reaching 19.75%, indicating improved net profitability relative to total assets.
Return on Total Capital:
This ratio exhibits extraordinary growth from September 2020 (67.16%) to March 2022 (495.01%), with a notable peak at over 1,755% in June 2022. The dramatic escalation suggests highly efficient utilization or inflated capital returns during that period, possibly driven by exceptional operational leverage or financial structuring. The absence of data thereafter precludes analysis beyond June 2022, but the prior trend underscores a period of substantial capital efficiency gains.
Return on Equity (ROE):
ROE demonstrates an aggressive upward trajectory throughout the period, from 56.40% in September 2020 to an exceptionally high 440.62% in March 2022. The ratios exhibit considerable leverage effects and strong profitability margins, although the data beyond June 2022 is not available for further assessment. The elevated ROE figures imply that shareholders have enjoyed significant returns on their equity during the observed periods.
Summary:
Overall, Seagate Technology PLC experienced a period of robust profitability from late 2020 through early 2022, characterized by rising ROA, Operating ROA, and extraordinary capital and shareholder returns, evidenced by high ROE and Return on Total Capital figures. From late 2022 onwards, profitability ratios deteriorated sharply into negative territory, indicating operational and perhaps strategic or market challenges. Nevertheless, recent data points toward a recovery trajectory, with profitability ratios improving notably in 2024 and projecting further growth into 2025. This pattern reflects cyclical fluctuations in performance, influenced by operational efficiencies, market conditions, or industry-specific factors affecting the company's ability to generate profits relative to its assets and capital.