Vestis Corporation (VSTS)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.21% | 30.26% | 28.93% | 28.13% | 29.20% |
| Operating profit margin | 5.64% | 7.71% | 7.15% | 3.92% | 5.84% |
| Pretax margin | 1.14% | 9.55% | 7.07% | 3.96% | 5.84% |
| Net profit margin | 0.75% | 7.54% | 5.27% | 3.02% | 4.36% |
Vestis Corporation's profitability ratios have shown fluctuations over the past five years. The gross profit margin has decreased significantly from 30.26% in 2023 to 8.21% in 2024, indicating a decline in the company's ability to generate profit after deducting the cost of goods sold.
Similarly, the operating profit margin has also decreased from 7.71% in 2023 to 5.64% in 2024, signaling a reduction in profitability from core operational activities. This trend suggests that Vestis may be facing challenges in managing its operating expenses efficiently.
The pretax margin has seen a substantial decline as well, dropping from 9.55% in 2023 to 1.14% in 2024. This indicates a significant decrease in the company's profit before accounting for taxes, highlighting potential issues in managing its overall expenses and generating income.
Furthermore, the net profit margin has also decreased from 7.54% in 2023 to 0.75% in 2024, suggesting a decline in Vestis Corporation's bottom line profitability after accounting for all expenses and taxes.
Overall, Vestis Corporation's profitability ratios have experienced a downward trend in 2024, indicating potential challenges in maintaining profitability and efficiency in its operations. Further analysis and strategic initiatives may be necessary to improve the company's financial performance and enhance shareholder value.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.39% | 6.90% | 6.14% | 3.10% | — |
| Return on assets (ROA) | 0.72% | 6.75% | 4.52% | 2.39% | — |
| Return on total capital | 7.73% | 24.84% | 8.23% | 4.13% | — |
| Return on equity (ROE) | 2.32% | 24.30% | 6.07% | 3.18% | — |
Vestis Corporation's profitability ratios show some fluctuation over the past five years.
1. Operating Return on Assets (Operating ROA): The trend in operating ROA shows a slight decrease from 6.90% in 2023 to 5.39% in 2024. This ratio indicates that for every dollar of assets, Vestis generated 5.39 cents of operating income in 2024.
2. Return on Assets (ROA): The ROA fluctuated more widely, with a significant decrease from 6.75% in 2023 to 0.72% in 2024. This metric shows that for every dollar of assets, Vestis generated 0.72 cents of net income in 2024.
3. Return on Total Capital: The return on total capital also showed variability, with a decrease from 24.84% in 2023 to 7.73% in 2024. This ratio indicates the overall return generated on all of Vestis's invested capital.
4. Return on Equity (ROE): The ROE displayed fluctuations as well, with a decrease from 24.30% in 2023 to 2.32% in 2024. This ratio reveals the return generated on the shareholders' equity investment.
Overall, these ratios suggest that Vestis Corporation experienced a decline in profitability in 2024 compared to the previous year. Further analysis would be needed to understand the factors driving these changes and to determine the company's overall financial health.