VeriSign Inc (VRSN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 87.71% | 86.79% | 85.91% | 85.55% | 85.76% |
| Operating profit margin | 67.95% | 67.01% | 66.19% | 65.29% | 65.15% |
| Pretax margin | 65.62% | 65.40% | 61.77% | 58.92% | 59.30% |
| Net profit margin | 50.45% | 54.76% | 47.29% | 59.12% | 64.41% |
VeriSign Inc has shown a consistently high gross profit margin over the years, increasing from 85.76% in December 31, 2020, to 87.71% in December 31, 2024. This indicates that the company is effectively managing its production costs and generating strong profits from its core operations.
The operating profit margin has also shown a positive trend, increasing from 65.15% in December 31, 2020, to 67.95% in December 31, 2024. This suggests that VeriSign Inc is efficiently controlling its operating expenses and maximizing its operational profitability.
The pretax margin has witnessed fluctuations but has generally increased from 59.30% in December 31, 2020, to 65.62% in December 31, 2024. This indicates that the company's pre-tax earnings as a percentage of total revenue have improved over the years.
However, despite the overall positive performance in other profitability ratios, the net profit margin has shown some variability. It decreased from 64.41% in December 31, 2020, to 50.45% in December 31, 2024. This may be due to various factors such as changes in tax rates, interest expenses, or other non-operating costs impacting the company's bottom line.
In conclusion, VeriSign Inc has exhibited strong profitability based on its gross profit margin and operating profit margin trends, although the fluctuation in net profit margin warrants further investigation to understand the underlying reasons for the decrease.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 75.24% | 57.21% | 54.41% | 43.69% | 46.65% |
| Return on assets (ROA) | 55.86% | 46.75% | 38.87% | 39.56% | 46.12% |
| Return on total capital | — | 478.30% | 417.86% | 165.04% | 206.11% |
| Return on equity (ROE) | — | — | — | — | — |
VeriSign Inc's profitability ratios exhibit a strong performance over the years.
1. Operating return on assets (Operating ROA) has seen an increase from 46.65% in 2020 to 75.24% in 2024, indicating that the company is generating higher operating profits relative to its total assets.
2. Return on assets (ROA) has also shown a positive trend, with an increase from 46.12% in 2020 to 55.86% in 2024. This suggests that VeriSign Inc is effectively utilizing its assets to generate profits for the business.
3. Return on total capital has experienced significant fluctuations, ranging from 165.04% in 2021 to 478.30% in 2023. Although the data for 2024 is unavailable, the trend indicates that the company has been efficient in generating returns on the total capital invested in the business.
4. Return on equity (ROE) data for VeriSign Inc is incomplete for the years under consideration, suggesting that information related to shareholder returns is not available for analysis.
Overall, VeriSign Inc's profitability ratios demonstrate a positive trend, reflecting the company's ability to effectively generate profits in relation to its assets and capital.