Advanced Drainage Systems Inc (WMS)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 37.68% | 39.87% | 36.42% | 28.90% | 34.80% |
| Operating profit margin | 22.64% | 25.47% | 23.42% | 14.87% | 17.38% |
| Pretax margin | 20.30% | 23.20% | 21.40% | 13.85% | 15.75% |
| Net profit margin | 15.50% | 17.74% | 16.51% | 9.80% | 11.31% |
Advanced Drainage Systems Inc has shown a fluctuating trend in its profitability ratios over the past five years. The gross profit margin, which reflects the company's ability to generate profit from its core operations, increased from 34.80% in March 2021 to 39.87% in March 2024, indicating improved efficiency in cost management. However, there was a slight decrease to 37.68% by March 2025.
Similarly, the operating profit margin, which measures the company's profitability after considering operating expenses, saw a slight decrease from 17.38% in March 2021 to 14.87% in March 2022, before increasing to 25.47% by March 2024. It then decreased to 22.64% by March 2025, indicating some fluctuations in operating efficiency.
The pretax margin, which indicates the company's profitability before taxes, also displayed fluctuations, with a decrease from 15.75% in March 2021 to 13.85% in March 2022, followed by an increase to 23.20% by March 2024. It then declined slightly to 20.30% by March 2025.
Lastly, the net profit margin, which shows the company's profitability after all expenses including interest and taxes, decreased from 11.31% in March 2021 to 9.80% in March 2022. However, it improved significantly to 17.74% by March 2024, before decreasing to 15.50% by March 2025.
Overall, Advanced Drainage Systems Inc has demonstrated varying levels of profitability over the years, with some improvements in gross and net profit margins, while the operating and pretax margins have shown more variability. These ratios indicate the company's ability to manage costs, generate profits, and maintain operational efficiency.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.81% | 22.40% | 24.79% | 15.55% | 14.27% |
| Return on assets (ROA) | 12.20% | 15.60% | 17.48% | 10.24% | 9.29% |
| Return on total capital | 0.00% | 59.88% | 74.41% | 38.32% | 33.15% |
| Return on equity (ROE) | 485.87% | 40.41% | 51.88% | 24.93% | 21.36% |
Advanced Drainage Systems Inc has shown a positive trend in its profitability ratios over the period from March 31, 2021, to March 31, 2025.
- Operating Return on Assets (Operating ROA), which measures the company's operating income generated per dollar of assets, has increased steadily from 14.27% in 2021 to 22.40% in 2024 before slightly decreasing to 17.81% in 2025. This indicates the company's ability to efficiently generate profits from its assets used in operations.
- Return on Assets (ROA), a broader measure of profitability, has also shown improvement over the period, increasing from 9.29% in 2021 to 12.20% in 2025. This indicates that the company has been more effective in utilizing its assets to generate profits for its stakeholders.
- Return on Total Capital, a measure of how effectively the company uses both equity and debt to generate profits, increased significantly from 33.15% in 2021 to 74.41% in 2023, before decreasing to 0.00% in 2025. The 2025 figure indicates that the company might not have effectively used its capital to generate returns in that year.
- Return on Equity (ROE), which shows how profitably the company uses shareholders' equity, has shown a robust improvement from 21.36% in 2021 to a remarkable 485.87% in 2025. This suggests that the company has been able to generate exceptional returns for its equity investors in recent years.
Overall, Advanced Drainage Systems Inc has demonstrated a positive trend in its profitability ratios, especially in terms of return on assets and return on equity, indicating effective management in utilizing its resources to generate profits for its stakeholders.