Varex Imaging Corp (VREX)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.49% | 32.99% | 33.19% | 25.76% | 32.88% |
| Operating profit margin | 8.63% | 10.26% | 9.06% | -4.56% | 5.85% |
| Pretax margin | 3.45% | 5.12% | 3.43% | -9.90% | 2.72% |
| Net profit margin | 5.40% | 3.53% | 2.13% | -7.84% | 1.99% |
The profitability ratios of Varex Imaging Corp have shown fluctuations over the past five years. The gross profit margin has been relatively stable, ranging from 25.76% to 33.19%, with a slight decrease in the most recent year to 32.49%. This indicates the company's ability to effectively manage production costs and generate profits from its core operations.
On the other hand, the operating profit margin has varied more significantly, moving from negative territory in 2020 to positive levels between 5.85% and 10.26% in the subsequent years. Despite a slight decline in the most recent year to 8.63%, the company has demonstrated an improvement in its operational efficiency and cost control measures.
The pretax margin reflects Varex Imaging Corp's ability to generate profits before accounting for taxes. Over the five-year period, the pretax margin has fluctuated, with the company experiencing negative margins in 2020 due to operational challenges but recovering to positive levels between 2.72% and 5.12% in the following years. The pretax margin for 2023 stands at 3.45%.
Lastly, the net profit margin, which represents the company's bottom line profits after all expenses have been deducted, has shown improvement over the years. Despite a negative margin of -7.84% in 2020, Varex Imaging Corp has managed to achieve positive net profit margins ranging from 1.99% to 5.40% in the subsequent years, with the most recent year's net profit margin at 5.40%. This suggests that the company has been successful in controlling costs and improving overall profitability.
In conclusion, Varex Imaging Corp has demonstrated a mix of stability and improvement in its profitability indicators over the past five years, showing resilience in managing costs and generating profits from its operations.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.17% | 7.45% | 6.46% | -2.96% | 4.40% |
| Return on assets (ROA) | 3.86% | 2.56% | 1.52% | -5.08% | 1.49% |
| Return on total capital | 5.96% | 8.86% | 7.67% | -4.61% | 5.23% |
| Return on equity (ROE) | 8.49% | 5.68% | 3.60% | -12.82% | 3.48% |
Varex Imaging Corp has shown varying levels of profitability over the past five years based on the profitability ratios provided.
The Operating Return on Assets (Operating ROA) has been positive and relatively stable, ranging from 6.17% to 7.45% over the last three years. This indicates the company's ability to generate operating profits from its assets.
The Return on Assets (ROA) has also shown an improving trend, with a positive ROA ranging from 1.52% to 3.86% over the same period. This suggests that Varex Imaging Corp is becoming more efficient in generating profits from its total assets.
Return on Total Capital has fluctuated over the years, with positive values ranging from -4.61% to 8.86%. This ratio reflects the company's ability to generate returns for both debt and equity holders.
Return on Equity (ROE) has also exhibited variability, with positive values ranging from 3.48% to 8.49%. Despite the fluctuations, the company has shown an ability to generate returns for its equity holders, although the negative ROE in 2020 indicates a loss for equity investors in that year.
In summary, Varex Imaging Corp has demonstrated a mix of profitability performance metrics over the past five years, with some ratios showing improvement and consistency, while others have experienced fluctuations. Further analysis of the company's financial statements and operational performance is recommended to gain a more complete understanding of its profitability trends.