Vestis Corporation (VSTS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | |
|---|---|---|---|---|
| Gross profit margin | 29.22% | 30.26% | 28.68% | 28.22% |
| Operating profit margin | 7.78% | 7.71% | 6.59% | 6.34% |
| Pretax margin | 8.51% | 9.55% | -0.63% | 0.17% |
| Net profit margin | 6.75% | 7.54% | -0.46% | 0.16% |
The profitability ratios of Vestis Corporation show a fluctuating trend over the past four quarters. The gross profit margin, which indicates the efficiency of the company's production and pricing strategies, exhibited a slight decline from 30.26% in September 2023 to 29.22% in December 2023. This suggests a potential decrease in profitability at the gross level.
The operating profit margin, reflecting the company's ability to control operating expenses relative to its revenue, remained relatively stable around 7.5% throughout the quarters. This indicates consistent operational efficiency in managing costs despite fluctuations in sales.
The pretax margin, a measure of profitability before taxes, experienced significant variations, ranging from a negative -0.63% in June 2023 to a positive 9.55% in September 2023. This fluctuation may imply fluctuations in the company's financial performance, potentially impacted by one-time events or challenges.
The net profit margin, representing the final profitability after all expenses, showed a similar pattern to the pretax margin, with negative figures in June 2023 and positive figures in the following quarters. This suggests that the company's bottom line profitability is influenced by various factors, including operational efficiency and tax implications.
Overall, Vestis Corporation's profitability ratios demonstrate a mixed performance over the past four quarters, indicating potential challenges in maintaining consistent profitability levels. Further analysis of the company's financial and operational aspects may be necessary to understand the underlying reasons for these fluctuations.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.99% | 6.90% | 5.81% | 5.52% |
| Return on assets (ROA) | 6.07% | 6.75% | -0.40% | 0.14% |
| Return on total capital | 30.32% | 30.88% | 20.27% | 19.49% |
| Return on equity (ROE) | 21.23% | 24.30% | -1.40% | 0.48% |
Vestis Corporation's profitability ratios show a mixed performance over the past four quarters. The Operating Return on Assets (Operating ROA) has been relatively stable around 6-7%, indicating that the company is generating profits from its core operational activities. This metric shows that for every dollar of assets, the company is generating around 6-7 cents of operating income.
Return on Assets (ROA) has varied more significantly, with positive values in the first and second quarters, but turning negative in the third quarter (-0.40%) before slightly recovering in the fourth quarter (0.14%). This suggests that while the company was able to generate profits in the first half of the year, it faced challenges or incurred losses in the third quarter. ROA is a key metric to assess how efficiently the company is utilizing its assets to generate profits.
Return on Total Capital and Return on Equity (ROE) have shown more positive trends compared to ROA. Both metrics have consistently shown strong performance over the four quarters, with Return on Total Capital exceeding 20% and Return on Equity ranging from 20% to 25%. These ratios indicate that the company is generating good returns for its investors and creditors.
Overall, Vestis Corporation's profitability ratios suggest that while the company is performing well in terms of generating returns for its capital providers, there may be some fluctuations in its operational profitability that require closer monitoring and analysis.