Standex International Corporation (SXI)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.05% | 39.13% | 38.47% | 36.71% | 36.76% |
| Operating profit margin | 15.43% | 14.12% | 23.09% | 12.01% | 9.02% |
| Pretax margin | 8.71% | 13.20% | 22.12% | 11.05% | 8.03% |
| Net profit margin | 7.06% | 10.14% | 18.76% | 8.35% | 5.56% |
The profitability ratios of Standex International Corporation over the periods from June 30, 2021, to June 30, 2025, depict a pattern of notable fluctuations and incremental improvements in certain areas.
The gross profit margin remained relatively stable from June 2021 (36.76%) to June 2022 (36.71%), indicating consistent core profitability during that period. Subsequently, it experienced a gradual increase, reaching 38.47% in June 2023 and continuing to improve modestly to 39.13% in June 2024. There was a slight decline to 38.05% in June 2025, but overall, the gross profit margin demonstrates an upward trajectory over the analyzed period, reflecting improved efficiency in core operations and possibly favorable pricing strategies.
The operating profit margin showed a more pronounced growth trajectory, rising from 9.02% in June 2021 to a peak of 23.09% in June 2023. This indicates a significant enhancement in operational efficiency and cost management during this period. After reaching this peak, the margin declined to 14.12% in June 2024 but displayed some recovery to 15.43% in June 2025, suggesting periods of variability in operating expenses or other operational factors impacting profitability.
Pre-tax margins followed a similar trend, increasing substantially from 8.03% in June 2021 to 22.12% in June 2023. Post-2023, there was a decline to 13.20% in June 2024, with a further decrease to 8.71% in June 2025. These fluctuations imply that factors affecting pre-tax income, such as interest expenses, non-operating incomes, or extraordinary items, have contributed to variability over time.
The net profit margin experienced the most dramatic change among the ratios, rising from 5.56% in June 2021 to a peak of 18.76% in June 2023, indicating improved bottom-line performance and effective control of expenses relative to revenues during this period. Subsequently, the margin declined to 10.14% in June 2024 and further to 7.06% in June 2025, reflecting challenges in sustaining profitability at the net level or increased tax burdens, interest expenses, or other factors negatively impacting net income.
Overall, the company exhibited robust improvement in profitability metrics through 2023, with notable peaks in margins across the board. The subsequent declines in 2024 and 2025 highlight periods of operational or market challenges. The data suggests that while Standex International initially capitalized on cost efficiencies and revenue growth, maintaining these gains becoming increasingly difficult in later years, leading to contractions in profitability ratios.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.78% | 10.12% | 16.69% | 9.45% | 6.15% |
| Return on assets (ROA) | 3.56% | 7.27% | 13.56% | 6.57% | 3.79% |
| Return on total capital | 13.03% | 15.31% | 27.11% | 17.85% | 12.04% |
| Return on equity (ROE) | 7.84% | 11.76% | 22.88% | 12.29% | 7.20% |
The analysis of Standex International Corporation’s profitability ratios over the period from June 30, 2021, to June 30, 2025, reveals notable fluctuations and trends across various performance metrics.
Beginning with the Operating Return on Assets (Operating ROA), there was a significant increase from 6.15% in 2021 to 9.45% in 2022, reflecting improved operational efficiency and profitability of core business activities. This upward trajectory continued sharply through 2023, reaching 16.69%, indicating a substantial enhancement in the company's ability to generate operating earnings from its assets. However, in 2024, the Operating ROA declined to 10.12%, and further decreased to 7.78% in 2025, suggesting a potential compression in operating margins or increased asset base with comparatively lower operating returns.
The Return on Assets (ROA), accounting for total profits after all expenses, also exhibited growth from 3.79% in 2021 to a peak of 13.56% in 2023. This trend aligns with the operating performance and demonstrates effective asset utilization during this period. Nonetheless, the subsequent decline to 7.27% in 2024 and further down to 3.56% in 2025 underscores a reduction in overall profitability on assets, potentially impacted by higher costs or lower net income levels relative to total assets.
Regarding the Return on Total Capital, which considers both debt and equity financing, a substantial increase was observed from 12.04% in 2021 to 27.11% in 2023, signaling highly efficient capital utilization during this period. While a decrease occurred in 2024 to 15.31%, and further to 13.03% in 2025, the ratios still reflect relatively strong capital returns compared to initial levels, albeit with some erosion of prior peak performance.
The Return on Equity (ROE) followed a similar pattern, improving markedly from 7.20% in 2021 to 22.88% in 2023, indicating enhanced profitability for shareholders and effective management of shareholders' equity. Subsequently, ROE declined to 11.76% in 2024 and further to 7.84% in 2025, which suggests a decline in net income relative to shareholders’ equity, possibly due to increased equity base or reduced net profitability.
Overall, the profitability ratios demonstrate substantial growth in the early years, particularly in 2022 and 2023, driven likely by operational improvements and better asset and capital utilization. The subsequent declines in 2024 and 2025 may reflect challenges such as margin compression, increased costs, or changes in broader market conditions impacting net income and overall profitability.