Vestis Corporation (VSTS)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|
| Gross profit margin | 30.26% | 28.93% | 28.13% | 29.20% |
| Operating profit margin | 7.71% | 7.15% | 3.92% | 5.84% |
| Pretax margin | 9.55% | 7.07% | 3.96% | 5.84% |
| Net profit margin | 7.54% | 5.27% | 3.02% | 4.36% |
Vestis Corporation has exhibited fluctuations in its profitability margins over the past four years.
1. Gross Profit Margin: The company's gross profit margin has shown a consistent increase from 28.13% in 2021 to 30.26% in 2023. This indicates that Vestis Corporation has been able to effectively manage its production costs and improve profitability at the gross level.
2. Operating Profit Margin: Vestis Corporation's operating profit margin has also shown an upward trend, from 3.92% in 2021 to 7.71% in 2023. This indicates that the company has been successful in controlling its operating expenses and generating higher profits from its core operations.
3. Pretax Margin: The pretax margin has also experienced a positive trend, increasing from 3.96% in 2021 to 9.55% in 2023. This suggests that Vestis Corporation has been able to improve its overall profitability before accounting for taxes, potentially through better revenue management or cost control measures.
4. Net Profit Margin: The net profit margin of Vestis Corporation has shown significant improvement over the years, increasing from 3.02% in 2021 to 7.54% in 2023. This indicates that the company has been efficient in managing its expenses and generating higher profits after accounting for all costs and taxes.
Overall, the trend in profitability margins for Vestis Corporation reflects a positive trajectory, indicating improved operational efficiencies, better cost management, and overall profitability over the years.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.90% | 6.14% | 3.10% | — |
| Return on assets (ROA) | 6.75% | 4.52% | 2.39% | — |
| Return on total capital | 24.84% | 8.23% | 4.13% | — |
| Return on equity (ROE) | 24.30% | 6.07% | 3.18% | — |
Vestis Corporation has shown a consistent improvement in its profitability ratios over the past four years.
1. Operating return on assets (Operating ROA) has increased from 3.10% in 2021 to 6.90% in 2023, indicating that the company is generating more operating income from its assets.
2. Return on assets (ROA) has also shown a positive trend, with an increase from 2.39% in 2021 to 6.75% in 2023. This metric indicates that Vestis Corporation is becoming more efficient in generating profits relative to its total assets.
3. Return on total capital has increased significantly from 4.13% in 2021 to 24.84% in 2023. This indicates that the company is effectively utilizing its total capital to generate profits.
4. Return on equity (ROE) has also shown a notable improvement, from 3.18% in 2021 to 24.30% in 2023. This metric highlights the company's ability to generate profits from the shareholders' equity.
Overall, the increasing trend in profitability ratios suggests that Vestis Corporation has been successful in improving its financial performance and efficiency in utilizing its assets and capital. This is a positive sign for investors and stakeholders, indicating the company's potential for sustainable growth and profitability.