VeriSign Inc (VRSN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 86.79% | 85.91% | 85.55% | 85.76% | 85.35% |
| Operating profit margin | 67.01% | 66.19% | 65.29% | 65.15% | 65.45% |
| Pretax margin | 65.40% | 61.77% | 58.92% | 59.30% | 61.61% |
| Net profit margin | 54.76% | 47.29% | 59.12% | 64.41% | 49.71% |
Verisign Inc. has demonstrated consistent and strong profitability over the past five years, as evidenced by its profitability ratios.
The gross profit margin has shown a slight increase over the years, ranging from 85.35% in 2019 to 86.79% in 2023. This indicates that the company has been effectively controlling its cost of goods sold and generating a high level of gross profit relative to its revenue.
The operating profit margin has also shown a positive trend, fluctuating between 65.15% in 2020 and 67.01% in 2023. This suggests that Verisign has been efficient in managing its operating expenses and achieving profitability from its core business operations.
The pretax margin has demonstrated a steady increase over the years, with the ratio improving from 58.92% in 2021 to 65.40% in 2023. This indicates that the company has been effective in managing its interest expenses and generating income before taxes relative to its total revenue.
Finally, the net profit margin has shown some variability but remains relatively high, ranging from 47.29% in 2022 to 64.42% in 2020. This suggests that Verisign has been successful in managing its taxes and other non-operating expenses to generate profits for its shareholders.
Overall, Verisign Inc. has exhibited strong profitability ratios, reflecting its ability to efficiently manage costs, generate revenue, and deliver consistent profits over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 57.21% | 54.41% | 43.69% | 46.65% | 43.48% |
| Return on assets (ROA) | 46.75% | 38.87% | 39.56% | 46.12% | 33.03% |
| Return on total capital | 478.30% | 417.86% | 165.04% | 206.11% | 271.00% |
| Return on equity (ROE) | — | — | — | — | — |
Verisign Inc. has demonstrated strong profitability over the years, as indicated by its profitability ratios. The operating return on assets (Operating ROA) has shown an increasing trend from 43.48% in 2019 to 57.21% in 2023, suggesting efficient management in generating operating profits relative to its total assets.
Similarly, the return on assets (ROA) has varied over the years but generally remained high, ranging from 33.03% in 2019 to 46.75% in 2023. This indicates that the company has been effective in generating profits from its assets.
The return on total capital has shown significant fluctuations, with a substantial spike to 478.30% in 2023 from 165.05% in 2021. This suggests that the company has been able to generate significant returns on its total invested capital, which includes both equity and debt.
Unfortunately, the return on equity (ROE) data is missing for the years provided, making it difficult to assess the company's profitability specifically in relation to shareholders' equity. Nonetheless, based on the Operating ROA, ROA, and return on total capital metrics, Verisign Inc. appears to have consistently strong profitability performance, reflecting efficient operations and effective utilization of capital resources.