TechTarget Inc (TTGT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 62.61% | 73.40% | 80.04% | 74.99% | 76.61% |
| Operating profit margin | -0.92% | 19.00% | 14.31% | 15.41% | 17.06% |
| Pretax margin | 5.85% | 19.29% | 4.61% | 15.20% | 16.54% |
| Net profit margin | 1.81% | 13.95% | 0.40% | 11.53% | 12.66% |
Techtarget Inc.'s profitability ratios have shown some fluctuation over the past five years. The gross profit margin has experienced a gradual decline from 76.22% in 2019 to 68.35% in 2023. This suggests that the company's cost of goods sold has increased relative to its revenue over this period.
The operating profit margin, on the other hand, has shown significant volatility, dropping to -0.99% in 2023 from 20.55% in 2022. This indicates that the company's operating expenses have increased significantly, or its revenue generation efficiency has declined.
The pretax margin has also varied widely, ranging from 4.21% in 2021 to 19.35% in 2022. The fluctuations in the pretax margin may be attributed to varying levels of non-operating income or expenses over the years.
Lastly, the net profit margin, which reflects how efficiently the company generates its profits after all expenses have been deducted, has shown some inconsistency as well. It dropped to 1.94% in 2023 from 13.99% in 2022.
The declining trend in the gross profit margin and the profitability margins indicates a potential decrease in efficiency and profitability in Techtarget Inc.'s operations. Further analysis of the company's cost structure, revenue generation strategies, and expense management may be necessary to address these margin declines and improve overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.32% | 7.41% | 4.35% | 5.00% | 10.26% |
| Return on assets (ROA) | 0.64% | 5.44% | 0.12% | 3.74% | 7.61% |
| Return on total capital | -1.02% | 26.07% | 15.42% | 6.40% | 12.96% |
| Return on equity (ROE) | 2.00% | 19.13% | 0.43% | 8.43% | 11.03% |
Techtarget Inc.'s profitability ratios show a mixed performance over the past five years.
- Operating return on assets (Operating ROA) has been inconsistent, with a significant decline in 2023 to -0.32%, indicating the company's operating income generated from its assets has decreased.
- Return on assets (ROA) has also shown variability, with a notable improvement in 2022 to 5.44% but a decline in 2023 to 0.64%, suggesting the company's overall efficiency in generating profits from its total assets has fluctuated.
- Return on total capital has fluctuated as well, with a substantial decrease in 2023 to -0.36%, indicating the company's ability to generate returns on its total invested capital has weakened.
- Return on equity (ROE) has shown a similar pattern, with a strong performance in 2022 at 19.13% but a decline in 2023 to 2.00%, reflecting the company's ability to generate profits from shareholders' equity has been inconsistent.
Overall, the company's profitability ratios indicate a varying performance, with some years showing improvement while others show a decline in profitability metrics. Techtarget Inc. may need to focus on operational efficiency and capital utilization to enhance its overall profitability in the future.