John Wiley & Sons (WLY)
Profitability ratios
Return on sales
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 71.20% | 69.05% | 65.71% | 66.36% | 67.79% |
| Operating profit margin | 13.20% | 2.79% | 2.77% | 10.53% | 9.56% |
| Pretax margin | 8.52% | -9.99% | 1.64% | 10.07% | 9.06% |
| Net profit margin | 5.02% | -10.70% | 0.85% | 7.12% | 7.64% |
The analysis of John Wiley & Sons' profitability ratios over the specified periods reveals notable trends and fluctuations across multiple metrics.
Gross Profit Margin:
The gross profit margin has remained relatively stable with minor fluctuations. It declined slightly from 67.79% in April 2021 to 66.36% in April 2022 and further to 65.71% in April 2023. However, it experienced an upward reversal afterward, reaching 69.05% in April 2024 and increasing further to 71.20% in April 2025. Overall, this trend indicates an improvement in core profitability and cost management efficiencies over the longer term, particularly in the most recent years.
Operating Profit Margin:
This ratio demonstrated a modest upward trend from 9.56% in April 2021 to 10.53% in April 2022, with a slight decrease to 10.35% in April 2023. A significant decline occurred in April 2024,when it dropped sharply to 2.79%. The ratio rebounded markedly to 13.20% in April 2025, surpassing previous levels. These fluctuations suggest periods of operational cost pressures or strategic shifts, but recent figures denote a return to stronger operational profitability.
Pre-Tax Margin:
Pre-tax margin followed a similar pattern, increasing from 9.06% in April 2021 to 10.07% in April 2022. It then dropped sharply to 1.64% in April 2023 and turned negative at -9.99% in April 2024, indicating losses before taxes during that period. Encouragingly, the margin recovered to 8.52% in April 2025, reflecting a return to profitability at the pre-tax level.
Net Profit Margin:
The net profit margin exhibited a decline from 7.64% in April 2021 to 7.12% in April 2022, and a steep decrease to 0.85% in April 2023. In April 2024, the net margin turned negative at -10.70%, indicating net losses. The margin improved significantly to 5.02% in April 2025, moving back into positive territory and indicating an overall recovery in bottom-line profitability.
In summary, while John Wiley & Sons experienced certain periods of declining profitability, particularly around April 2023 and April 2024, recent data from April 2025 indicates a resilient recovery. The recent upward trend in gross profit margin, operating profit margin, pre-tax margin, and net profit margin suggest improvements in revenue efficiency, cost management, and overall profitability. However, periods of volatility highlight the importance of ongoing management strategies to sustain these positive trends.
Return on investment
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.23% | 1.92% | 1.80% | 6.52% | 5.38% |
| Return on assets (ROA) | 3.13% | -7.35% | 0.55% | 4.41% | 4.30% |
| Return on total capital | 25.98% | -17.33% | 7.26% | 19.72% | 17.47% |
| Return on equity (ROE) | 11.19% | -27.08% | 1.65% | 12.98% | 13.59% |
The analysis of John Wiley & Sons' profitability ratios over the reported periods reveals varying trends and significant fluctuations, particularly in recent years.
The Operating Return on Assets (Operating ROA) demonstrated a steady increase from 5.38% on April 30, 2021, to 6.52% on April 30, 2022, and further to 6.72% on April 30, 2023. This upward trend indicates an improvement in the company's efficiency in generating operating income relative to its assets during this period. However, a sharp decline is observed in April 2024, with the Operating ROA decreasing to 1.92%, implying a significant deterioration in operating profitability or asset utilization.
Similarly, the Return on Assets (ROA), which reflects the company's overall profitability after considering total assets, trended modestly upward from 4.30% in 2021 to 4.41% in 2022 but experienced a drastic decrease to 0.55% in 2023. The subsequent data for 2024 shows a negative ROA of -7.35%, indicating that the company incurred net losses relative to its total assets during that year.
The Return on Total Capital follows a comparable pattern, with an increase from 17.47% in 2021 to 19.72% in 2022, followed by a notable decline to 7.26% in 2023. The decline in 2023 suggests challenges in generating returns from the company's entire capital base, and the negative figure in 2024 (-17.33%) signifies that the company experienced negative returns on its total capital, likely due to increased costs, reduced revenues, or impairments.
The Return on Equity (ROE) mirrors the trends observed in other profitability ratios. It decreased from 13.59% in 2021 to 12.98% in 2022, then sharply dropped to 1.65% in 2023. The subsequent negative ROE of -27.08% in 2024 indicates that shareholders' equity was eroded by losses during this period.
Overall, these ratios indicate that John Wiley & Sons experienced a period of improving operational profitability until 2022, followed by a significant downturn starting in 2023 and continuing into 2024. The negative values in 2024 suggest substantial challenges impacting the company's ability to generate profits, affecting asset efficiency, capital returns, and shareholder value. The missing data for 2025 precludes further analysis for that year.