Varex Imaging Corp (VREX)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.68% | 32.49% | 32.99% | 33.19% | 25.76% |
| Operating profit margin | 3.96% | 8.63% | 10.26% | 9.06% | -4.56% |
| Pretax margin | 0.55% | 3.45% | 5.12% | 3.43% | -9.90% |
| Net profit margin | -5.88% | 5.40% | 3.53% | 2.13% | -7.84% |
Varex Imaging Corp's profitability ratios have shown a mixed performance over the past five years.
- Gross profit margin has been relatively stable, decreasing slightly from 33.19% in 2021 to 31.68% in 2024. This indicates that the company has been able to maintain a consistent level of profitability on its sales after accounting for the cost of goods sold.
- Operating profit margin has fluctuated significantly, with a notable decline from 10.26% in 2022 to 3.96% in 2024. This indicates that the company's operating expenses have been impacting its profitability.
- Pretax margin has also shown variability, decreasing gradually from 5.12% in 2022 to 0.55% in 2024. This suggests that the company's profitability before accounting for taxes has been on a downward trend.
- Net profit margin, however, has been the most volatile, ranging from -7.84% in 2020 to -5.88% in 2024. This indicates that the company's bottom line profitability has been negative in certain years, affecting its overall financial performance.
Overall, while Varex Imaging Corp has maintained a relatively stable gross profit margin, its operating profit margin, pretax margin, and net profit margin have shown more inconsistent trends, signaling potential challenges in managing operating expenses and maintaining profitability.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.64% | 6.17% | 7.45% | 6.46% | -2.96% |
| Return on assets (ROA) | -3.92% | 3.86% | 2.56% | 1.52% | -5.08% |
| Return on total capital | 3.44% | 5.96% | 8.86% | 7.67% | -4.61% |
| Return on equity (ROE) | -8.91% | 8.49% | 5.68% | 3.60% | -12.82% |
Varex Imaging Corp's profitability ratios have shown fluctuations over the past five years.
The Operating Return on Assets (Operating ROA) has declined from 7.45% in 2022 to 2.64% in 2024. This indicates that the company's operating income generated per dollar of assets has reduced over the years, possibly due to declining operational efficiency or increased asset base.
Return on Assets (ROA) has been negative for the past two years, implying that the company has been experiencing losses relative to its total assets. In 2023, there was a significant improvement with a positive ROA of 3.86%, but this was short-lived as the ratio turned negative again in 2024.
Return on Total Capital has exhibited a similar trend to Operating ROA, declining from 8.86% in 2022 to 3.44% in 2024. This indicates a reduction in the overall return on the total capital invested in the company.
Return on Equity (ROE) has been negative for the past three years, with the highest negative ROE of 12.82% in 2020. This suggests that the company has not been generating positive returns for its shareholders, possibly due to high levels of debt or inefficient use of equity.
Overall, Varex Imaging Corp's profitability ratios indicate a mixed performance, with declining returns on assets, capital, and equity in recent years.