Seagate Technology PLC (STX)
Profitability ratios
Return on sales
| 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 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 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% | 27.04% |
| Operating profit margin | 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% | 12.37% |
| Pretax margin | 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% | 9.82% |
| Net profit margin | 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% | 9.55% |
The analysis of Seagate Technology PLC’s profitability ratios over the specified periods reveals noteworthy fluctuations and trends that merit detailed examination.
Gross Profit Margin:
The gross profit margin remained relatively stable from June 2020 through early 2022, fluctuating modestly within the range of approximately 27% to nearly 30%. Notably, the margin peaked at 29.84% in March 2022 before experiencing a declining trend through late 2023. The most significant decline occurred from the end of 2022 with a notable drop to 24.52%, followed by further decreases to 21.47% in March 2023 and 18.30% in June 2023. However, a recovery is observed subsequently, with margins increasing to 23.45% in June 2024 and further to 31.75% by December 2024, culminating in a projected margin of 33.79% in March 2025.
Operating Profit Margin:
Initially, the operating profit margin showed gradual improvement from approximately 12.4% in mid-2020 to around 17% in late 2021. This upward trajectory, however, reversed sharply beginning in late 2022. By December 2022, the operating margin had fallen to 7.87%, turning negative in early 2023, reaching as low as -8.50% in September 2023. The trend thereafter shifts positively, with the operating margin rising back into positive territory at 2.62% in March 2024 and continuing upward to an expected 19.12% by March 2025 after peaking at 16.74% in December 2024.
Pre-Tax Margin:
The pre-tax margin followed a similar pattern, with stability around 9.8% to 15.7% through late 2021. In late 2022, it declined sharply, turning negative at -1.55% in March 2023, with further deterioration to -9.85% in September 2023. Post-2023, the pre-tax margin rebounds, with projections reaching 18.26% in March 2025, after a low point of -9.83% at the end of 2023.
Net Profit Margin:
The net profit margin demonstrated a stable trend from 2020 through 2022, reaching a peak of 15.35% in December 2021. Subsequently, a decline commenced, culminating in negative margins of -11.25% at the end of 2023 and September 2023. The trend reverses starting in mid-2024, with net profit margins improving to positive figures, reaching 17.49% by March 2025.
Overall Observations:
The profitability ratios indicate a period of stability and modest profitability from mid-2020 through 2022. However, starting in late 2022, there is a pronounced deterioration across all margins, coinciding with potential operational or market challenges, as evidenced by negative operating, pre-tax, and net margins during late 2022 and early 2023. The subsequent recovery beginning in late 2023 and into 2024 reflects an upward normalization, with projections suggesting a return to and surpassing prior profitability levels by early 2025.
In conclusion, Seagate’s profitability has experienced significant fluctuations over the observed periods, characterized by a sharp downturn in late 2022 and early 2023, followed by a recover and upward trend projected through to early 2025.
Return on investment
| 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 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 14.56% |
| Return on assets (ROA) | 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% | 11.24% |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | — | 1,755.96% | 495.01% | 393.73% | 307.49% | 239.78% | 249.59% | 120.10% | 67.16% | 70.57% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | 1,512.84% | 440.62% | 349.43% | 269.05% | 208.24% | 206.20% | 99.90% | 56.40% | 56.18% |
The analysis of Seagate Technology PLC's profitability ratios over the specified periods reveals significant variations and evolving trends in the company's financial performance.
Operating Return on Assets (Operating ROA):
From June 2020 through March 2022, the Operating ROA generally exhibits an increasing trend, peaking at 22.99% in March 2022. This consistent growth suggests improved operational efficiency and effective asset utilization during this period. However, starting from June 2022, the Operating ROA declines notably, reaching negative territory by March 2023, with values dropping to -0.10%. The negative figures in late 2023 and early 2024 indicate a period of operational challenges or losses, though a recovery begins thereafter, with positive figures resuming in June 2024 at 5.80% and rising further to 21.59% by March 2025. This pattern indicates a substantial turnaround after a difficult period.
Return on Assets (ROA):
The ROA, which considers net income in relation to total assets, follows a similar trajectory. It peaks at 20.28% in March 2022, reflecting strong profitability aligned with operational efficiency. Post-2022, the ROA declines sharply, turning negative around March 2023 and continuing to deteriorate through late 2023. From June 2024 onwards, the ratio shows a positive trend, culminating in 19.75% in March 2025, indicative of renewed profitability and effective asset management.
Return on Total Capital:
This ratio demonstrates an extraordinarily high and volatile pattern, with values reaching as high as 1,755.96% in June 2022. Such astronomical figures suggest the use of leverage or possibly distortions in capital structure measurement during that period. The ratio was not reported beyond June 2022, which limits comprehensive trend analysis thereafter; nonetheless, the spike underscores substantial gains, likely driven by financial leverage or extraordinary items at that time.
Return on Equity (ROE):
This ratio shows remarkable growth from June 2020 through March 2022, with values ascending from 56.18% to a peak of 440.62%. These figures reflect strong profitability attributable to shareholders, driven possibly by high leverage and operational excellence. Beyond March 2022, the ratios are not available, but the earlier periods depict a robust and escalating profitability profile for equity holders.
Summary:
Overall, Seagate's profitability ratios from mid-2020 to early 2022 indicate a period of strengthening profitability, supported by operational efficiency and high returns on capital and equity. The notable decline into negative territory in 2023 suggests operational difficulties or external market challenges, but a recovery trajectory begins in mid-2024, with ratios returning to positive and potentially strong levels by 2025. The extraordinary fluctuations, especially in Return on Total Capital and ROE, emphasize the impact of leverage, financial structuring, or extraordinary items, underscoring the importance of examining comprehensive financial statements for a complete understanding.