Supernus Pharmaceuticals Inc (SUPN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -0.00% | 30.55% | 31.72% | 48.61% | 55.04% |
| Operating profit margin | -0.00% | 6.85% | 15.36% | 34.67% | 37.83% |
| Pretax margin | 0.46% | 9.02% | 13.07% | 33.66% | 37.55% |
| Net profit margin | -0.00% | 9.02% | 9.54% | 25.34% | 28.79% |
The profitability ratios of Supernus Pharmaceuticals Inc have shown a declining trend over the past five years. The gross profit margin has decreased from 95.76% in 2019 to 86.21% in 2023, indicating a decrease in the company's ability to generate profits from its core operations.
Similarly, the operating profit margin has seen a significant drop from 37.83% in 2019 to 2.21% in 2023. This suggests that Supernus Pharmaceuticals Inc is experiencing challenges in controlling its operating expenses and is becoming less efficient in generating profits from its day-to-day operations.
The pretax margin has also shown a decline over the period, decreasing from 37.55% in 2019 to 0.46% in 2023. This indicates that the company's profitability before taxes has been eroding over time, potentially due to increased expenses or lower revenue.
Moreover, the net profit margin has seen a similar downward trajectory, falling from 28.79% in 2019 to a mere 0.22% in 2023. This reflects a decrease in the company's bottom-line profitability, indicating challenges in generating profits after accounting for all expenses and taxes.
Overall, the declining profitability ratios of Supernus Pharmaceuticals Inc raise concerns about the company's ability to maintain profitability and may warrant further investigation into the factors contributing to this negative trend.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -100.00% | 2.71% | 5.09% | 11.55% | 12.80% |
| Return on assets (ROA) | -100.00% | 3.57% | 3.16% | 8.44% | 9.74% |
| Return on total capital | -100.00% | — | 7.77% | 17.00% | 17.62% |
| Return on equity (ROE) | -100.00% | — | 6.55% | 17.04% | 18.99% |
The profitability ratios of Supernus Pharmaceuticals Inc have exhibited some fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has shown a decreasing trend from 2019 to 2023, indicating that the company's ability to generate profits from its assets has weakened over time. This could be a cause for concern as it may signal inefficiencies in the utilization of assets.
2. Return on assets (ROA) has also displayed a decreasing trend from 2019 to 2023, with a significant drop in 2020. This suggests that the company's overall profitability in relation to its total assets has declined, which could be attributed to lower profits relative to its asset base.
3. Return on total capital has shown a similar trend to ROA, indicating a decrease in the company's ability to generate returns from its total invested capital. This trend may raise concerns about the company's capital allocation efficiency and overall financial performance.
4. Return on equity (ROE) has fluctuated over the years, with a notable decrease between 2021 and 2022. Despite some variability, the ROE has generally been positive, but at relatively low levels compared to earlier years. This could suggest a decrease in the company's profitability in relation to shareholders' equity.
In conclusion, the profitability ratios of Supernus Pharmaceuticals Inc have shown mixed performance over the past five years, with some ratios declining and fluctuating. Further analysis of the company's financial statements and operational strategies may be necessary to pinpoint the underlying reasons for these trends and to assess the company's overall financial health and sustainability.