Advanced Drainage Systems Inc (WMS)
Profitability ratios
Return on sales
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.77% | 36.41% | 28.91% | 34.91% | 19.38% |
| Operating profit margin | 25.41% | 23.42% | 14.88% | 17.43% | -5.84% |
| Pretax margin | 23.22% | 21.41% | 13.78% | 15.71% | -10.97% |
| Net profit margin | 17.70% | 16.51% | 9.80% | 11.34% | -11.83% |
Advanced Drainage Systems Inc has shown a consistent improvement in its profitability over the past five years. The gross profit margin has been increasing steadily, indicating the company's ability to control its cost of goods sold and generate more revenue on each dollar of sales. The operating profit margin has also shown improvement, reflecting efficient management of operating expenses.
The pretax and net profit margins have displayed a positive trend, indicating the company's ability to generate healthy profits before and after accounting for taxes. The significant increase in net profit margin from negative in 2020 to 17.70% in 2024 reflects a remarkable turnaround in the company's profitability.
Overall, these profitability ratios suggest that Advanced Drainage Systems Inc has shown strong financial performance and is effectively managing its costs and operations to generate higher profits over time.
Return on investment
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 22.40% | 24.79% | 15.55% | 14.27% | -4.02% |
| Return on assets (ROA) | 15.60% | 17.48% | 10.24% | 9.29% | -8.15% |
| Return on total capital | 30.34% | 34.36% | 22.86% | 21.51% | -5.90% |
| Return on equity (ROE) | 44.21% | 61.53% | 30.38% | 27.35% | -36.74% |
Advanced Drainage Systems Inc has shown consistent improvement in its profitability ratios over the past five years.
The Operating Return on Assets (Operating ROA) has fluctuated but generally increased, indicating that the company has been able to generate higher operating income relative to its total assets, with a notable peak in 2023. This suggests efficient asset utilization and operational performance.
Return on Assets (ROA) has also exhibited an upward trend, showing improvement in the company's ability to generate profits from its total assets. Although there were negative values in 2020 and 2021, the company managed to turn around and achieve positive returns in the following years.
Return on Total Capital has consistently increased, demonstrating the company's effectiveness in generating returns for both equity and debt holders. This indicates that the company has been able to make efficient use of both equity and debt to generate profits.
Return on Equity (ROE) has shown significant improvement over the years, reflecting the company's ability to generate strong returns for its shareholders. The substantial increase in ROE from 2020 to 2021 is particularly noteworthy, indicating improved profitability and efficiency in utilizing shareholder equity.
Overall, the profitability ratios of Advanced Drainage Systems Inc suggest a positive trend of increasing profitability and improved efficiency in utilizing its assets and capital to generate returns for its stakeholders.