Supernus Pharmaceuticals Inc (SUPN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.28% | -0.00% | 30.55% | 31.72% | 48.61% |
| Operating profit margin | 12.34% | -0.87% | 6.85% | 15.36% | 34.67% |
| Pretax margin | 14.79% | 0.46% | 9.02% | 13.07% | 33.66% |
| Net profit margin | 11.16% | 0.22% | 9.02% | 9.54% | 25.34% |
Based on the provided data, we can analyze the profitability ratios of Supernus Pharmaceuticals Inc over five fiscal years.
1. Gross Profit Margin:
- The gross profit margin indicates the percentage of revenue that exceeds the cost of goods sold.
- Supernus Pharmaceuticals Inc's gross profit margin has shown a decrease from 48.61% in December 2020 to 30.55% in December 2022 before rebounding to 39.28% in December 2024.
- The significant drop in 2023 to -0.00% suggests that the company may have experienced challenges in managing its cost of goods sold efficiently.
2. Operating Profit Margin:
- The operating profit margin reveals the percentage of revenue remaining after deducting operating expenses.
- Supernus Pharmaceuticals Inc's operating profit margin fluctuated from 34.67% in December 2020 to 12.34% in December 2024.
- The lowest point recorded in 2023 at -0.87% indicates that the company struggled with controlling its operating costs efficiently during that period.
3. Pretax Margin:
- The pretax margin highlights the percentage of revenue remaining after deducting all expenses except taxes.
- The trend of Supernus Pharmaceuticals Inc's pretax margin shows a drop from 33.66% in December 2020 to 14.79% in December 2024.
- The sharp decline in 2023 to 0.46% suggests that the company faced challenges in managing various expenses effectively during that year.
4. Net Profit Margin:
- The net profit margin signifies the percentage of revenue that translates into net income after all expenses, including taxes.
- Supernus Pharmaceuticals Inc's net profit margin varied from 25.34% in December 2020 to 11.16% in December 2024.
- The lowest point in 2023 at 0.22% indicates that the company's profitability was significantly impacted, potentially by higher expenses relative to revenue during that period.
In summary, Supernus Pharmaceuticals Inc experienced fluctuations in its profitability margins over the five-year period, with varying challenges in managing costs and expenses. The company's ability to improve margins in some years suggests potential efforts to enhance operational efficiency and profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.97% | -0.41% | 2.71% | 5.09% | 11.55% |
| Return on assets (ROA) | 5.40% | 0.10% | 3.57% | 3.16% | 8.44% |
| Return on total capital | 7.88% | -0.00% | 5.20% | 7.77% | 17.00% |
| Return on equity (ROE) | 7.13% | 0.14% | 6.85% | 6.55% | 17.04% |
Supernus Pharmaceuticals Inc's profitability ratios demonstrate varying levels of performance over the years.
1. Operating return on assets (Operating ROA) has declined from 11.55% in 2020 to 5.09% in 2021, further decreasing to 2.71% in 2022, and then turning negative at -0.41% in 2023. However, there was a partial recovery to 5.97% in 2024. This indicates a decline in the company's ability to generate operating profit from its assets in the recent years.
2. Return on assets (ROA) has shown a similar trend, starting at 8.44% in 2020 and declining to 3.16% in 2021 and 3.57% in 2022. It dropped significantly to 0.10% in 2023 before increasing to 5.40% in 2024. This ratio represents the overall profitability of the company's assets.
3. Return on total capital reflects the return generated on all capital invested in the business. It decreased significantly from 17.00% in 2020 to 7.77% in 2021, further declining to 5.20% in 2022 and turning negative at -0.00% in 2023. There was a slight recovery to 7.88% in 2024, indicating a mixed performance in utilizing total capital effectively.
4. Return on equity (ROE) experienced a decline from 17.04% in 2020 to 6.55% in 2021 and then stabilizing slightly at 6.85% in 2022. However, it dropped to 0.14% in 2023 before showing a modest improvement to 7.13% in 2024. ROE measures the return generated on shareholders' equity and indicates how effectively the company is utilizing equity to generate profits.
Overall, these profitability ratios suggest that Supernus Pharmaceuticals Inc has faced challenges in maintaining and growing its profitability in recent years, reflecting the need for strategic initiatives to improve operational efficiencies and optimize capital utilization.