Advanced Drainage Systems Inc (WMS)

Profitability ratios

Return on sales

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Gross profit margin 37.68% 37.66% 38.65% 38.98% 39.87% 39.34% 38.17% 37.40% 36.42% 34.68% 33.56% 31.56% 28.90% 29.09% 30.22% 32.78% 34.80% 35.17% 34.48% 32.06%
Operating profit margin 22.64% 22.98% 24.11% 24.49% 25.47% 25.45% 24.50% 24.30% 23.42% 21.54% 20.69% 18.39% 14.87% 14.36% 14.60% 16.17% 17.38% 16.67% 15.21% 11.99%
Pretax margin 20.30% 20.75% 21.88% 22.32% 23.20% 23.03% 22.13% 21.87% 21.40% 19.95% 19.38% 17.34% 13.85% 13.27% 13.38% 14.83% 15.75% 14.57% 12.73% 6.99%
Net profit margin 15.50% 15.90% 16.89% 17.09% 17.74% 17.65% 16.86% 16.82% 16.51% 14.93% 14.38% 12.69% 9.80% 9.66% 9.75% 10.72% 11.31% 10.83% 9.70% 5.86%

Advanced Drainage Systems Inc has shown improvements in its profitability ratios over the past few years.

- Gross profit margin has been increasing consistently from 32.06% in June 2020 to 37.68% in March 2024, indicating the company's ability to generate more profit from its revenue after accounting for the cost of goods sold.

- Operating profit margin has also been on an upward trend, rising from 11.99% in June 2020 to 22.64% in March 2025. This indicates that the company has been managing its operating expenses effectively while increasing its operational efficiency.

- Pretax margin has shown a similar positive trend, increasing from 6.99% in June 2020 to 20.30% in March 2025. This suggests that the company has been able to improve its profitability before accounting for taxes through revenue growth and cost management.

- Net profit margin, which reflects the company's bottom-line profitability, has increased steadily from 5.86% in June 2020 to 15.50% in March 2025. This indicates that the company has been able to translate its revenue into higher net income through effective cost control and improved operational performance.

Overall, Advanced Drainage Systems Inc's profitability ratios demonstrate a positive trajectory, reflecting the company's strong financial performance and effective management of its operations.


Return on investment

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Operating return on assets (Operating ROA) 17.81% 18.77% 19.87% 20.69% 22.09% 22.85% 22.10% 23.39% 24.79% 22.44% 20.78% 17.18% 15.55% 14.24% 13.43% 14.01% 14.27% 13.59% 11.65% 8.78%
Return on assets (ROA) 12.20% 12.99% 13.92% 14.44% 15.39% 15.84% 15.21% 16.19% 17.48% 15.55% 14.45% 11.86% 10.24% 9.58% 8.97% 9.28% 9.29% 8.83% 7.43% 4.29%
Return on total capital 729.12% 44.63% 48.44% 52.54% 57.36% 59.49% 58.69% 64.20% 73.82% 61.62% 55.60% 47.46% 38.30% 36.72% 38.96% 36.45% 35.09% 35.14% 31.94% 31.06%
Return on equity (ROE) 485.87% 30.26% 33.38% 36.41% 40.41% 41.74% 41.06% 45.16% 51.88% 42.57% 38.31% 32.45% 24.93% 24.35% 24.53% 22.72% 21.36% 20.40% 18.70% 12.16%

Advanced Drainage Systems Inc has shown a positive trend in its profitability ratios over the years based on the provided data.

1. Operating return on assets (Operating ROA) has steadily increased from 8.78% on June 30, 2020, to 17.81% on March 31, 2025. This indicates the company's ability to generate profits from its operational activities relative to its total assets.

2. Return on assets (ROA) also demonstrates a consistent improvement, rising from 4.29% on June 30, 2020, to 12.20% on March 31, 2025. This ratio signifies the company's overall efficiency in using its assets to generate earnings.

3. Return on total capital exhibits a substantial growth trajectory, reaching an exceptional 729.12% on March 31, 2025, from 31.06% on June 30, 2020. This indicates the company's effectiveness in generating returns in proportion to its total capital employed.

4. Return on equity (ROE) has displayed a consistent upward trend, increasing from 12.16% on June 30, 2020, to 485.87% on March 31, 2025. This ratio reflects the profitability of the company from the perspective of its equity shareholders.

Overall, the progressive improvement in these profitability ratios reflects Advanced Drainage Systems Inc's ability to enhance its operational efficiency, asset utilization, capital returns, and shareholder value over the years.