TechTarget, Inc. Common Stock (TTGT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 62.35% | 0.07% | 73.62% | 72.97% | 74.83% |
| Operating profit margin | -8.79% | -0.00% | 19.06% | 13.04% | 15.38% |
| Pretax margin | -45.42% | 0.01% | 19.35% | 4.21% | 15.17% |
| Net profit margin | -41.02% | 0.00% | 13.99% | 0.36% | 11.50% |
TechTarget, Inc. Common Stock's profitability ratios demonstrate varying performance over the years. The gross profit margin, a key indicator of efficiency in production and pricing, declined slightly from 74.83% in 2020 to 72.97% in 2021 but recovered to 73.62% in 2022. However, there was a sharp decrease to a mere 0.07% in 2023. This suggests potential issues with cost control or pricing strategy that need addressing.
Moving to operating profit margin, which reflects the company's ability to generate profit from its core operations, there was a downward trend from 15.38% in 2020 to 13.04% in 2021, followed by a notable improvement to 19.06% in 2022. However, the margin turned negative to -0.00% in 2023, indicating that the company may be struggling to generate profits from operations.
The pretax margin, representing the firm's ability to control operating costs and generate profit before accounting for taxes, showed a substantial drop from 15.17% in 2020 to 4.21% in 2021 but then rebounded to 19.35% in 2022 before almost disappearing at 0.01% in 2023. This pattern indicates significant volatility in the company's profitability before tax.
Lastly, the net profit margin, indicating the percentage of revenue that translates into profit after all expenses have been deducted, saw a significant decrease from 11.50% in 2020 to 0.36% in 2021. It then recovered to 13.99% in 2022 but dropped dramatically to 0.00% in 2023.
Overall, the analysis of these profitability ratios suggests that TechTarget, Inc. Common Stock experienced fluctuating profitability levels over the analyzed period, indicating potential challenges in maintaining consistent profitability and cost control.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.10% | -0.00% | 7.41% | 4.35% | 5.00% |
| Return on assets (ROA) | -5.16% | 0.00% | 5.44% | 0.12% | 3.74% |
| Return on total capital | 0.00% | -0.00% | 26.46% | 15.42% | 11.27% |
| Return on equity (ROE) | -7.43% | 0.00% | 19.13% | 0.43% | 8.43% |
TechTarget, Inc. Common Stock's profitability ratios exhibit varying performance over the years. The Operating Return on Assets (Operating ROA) decreased from 5.00% in December 2020 to 4.35% in December 2021 but improved significantly to 7.41% in December 2022 before dropping to 0.00% in December 2023.
Similarly, the Return on Assets (ROA) saw a decrease from 3.74% in December 2020 to 0.12% in December 2021, followed by a notable increase to 5.44% in December 2022 and a subsequent drop to 0.00% in December 2023.
The Return on Total Capital showed a positive trend, increasing from 11.27% in December 2020 to 15.42% in December 2021 and further to 26.46% in December 2022. However, it declined to 0.00% in December 2023.
The Return on Equity (ROE) indicated a downward trajectory, dropping from 8.43% in December 2020 to 0.43% in December 2021. It then rebounded to 19.13% in December 2022 but fell to 0.00% in December 2023.
The trends in these profitability ratios suggest that TechTarget, Inc. Common Stock experienced fluctuations in its ability to generate profits in relation to its assets, capital, and equity over the years. The company should closely monitor and address the factors contributing to these fluctuations to ensure sustainable profitability in the future.