Vestis Corporation (VSTS)
Profitability ratios
Return on sales
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | |
|---|---|---|---|---|---|---|---|
| Gross profit margin | 8.69% | 14.78% | 20.66% | 25.56% | 30.26% | 28.68% | 28.22% |
| Operating profit margin | 5.63% | 6.65% | 7.61% | 7.78% | 7.71% | 6.59% | 6.34% |
| Pretax margin | 1.14% | 8.18% | 9.08% | 8.51% | 9.55% | -0.63% | 0.17% |
| Net profit margin | 0.75% | 6.47% | 7.16% | 6.75% | 7.54% | -0.46% | 0.16% |
Vestis Corporation's profitability ratios have exhibited a declining trend over the past few quarters. The gross profit margin has seen a significant decrease from 30.26% in Q3 2023 to 8.69% in Q3 2024, indicating a decrease in the company's ability to generate profit after accounting for the cost of goods sold.
Similarly, the operating profit margin has also decreased from 7.71% in Q3 2023 to 5.63% in Q3 2024, suggesting that the company's operational efficiency has declined. This trend is also reflected in the pretax margin, which has decreased from 9.55% in Q3 2023 to 1.14% in Q3 2024, indicating lower profitability before accounting for taxes.
The net profit margin has followed a similar pattern, decreasing from 7.54% in Q3 2023 to 0.75% in Q3 2024. This decline in the net profit margin suggests that the company's bottom line profitability has been negatively impacted.
Overall, the declining trend in Vestis Corporation's profitability ratios raises concerns about the company's ability to maintain profitability and efficiency in its operations. Further analysis and investigation into the factors contributing to this decline are recommended to address these issues and improve the company's financial performance.
Return on investment
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | |
|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.39% | 6.00% | 6.94% | 6.99% | 6.90% | 5.81% | 5.52% |
| Return on assets (ROA) | 0.72% | 5.84% | 6.54% | 6.07% | 6.75% | -0.40% | 0.14% |
| Return on total capital | 7.70% | 10.47% | 11.62% | 11.62% | 30.88% | 20.27% | 19.49% |
| Return on equity (ROE) | 2.32% | 20.38% | 22.66% | 21.23% | 24.30% | -1.40% | 0.48% |
Vestis Corporation's profitability ratios show fluctuations over the past seven quarters. The Operating return on assets (Operating ROA) has ranged from 5.39% to 6.99% during this period, indicating the company's ability to generate profits from its assets before interest and taxes.
The Return on assets (ROA) has been volatile, with a notable negative value in one quarter (-0.40%) but generally positive ranging from 0.72% to 6.75%. This ratio reflects the company's overall profitability in relation to its total assets.
The Return on total capital has shown significant variability, ranging from 7.70% to 30.88%, suggesting fluctuations in the efficiency of using both debt and equity to generate profits.
The Return on equity (ROE) has also fluctuated, with values between -1.40% and 24.30%, indicating varying levels of profitability from the shareholders' perspective.
Overall, Vestis Corporation's profitability ratios show mixed performance over the quarters, highlighting the importance of monitoring and analyzing these ratios to understand the company's financial health and performance.