Wolfspeed Inc (WOLF)
Profitability ratios
Return on sales
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 9.57% | 21.75% | 24.73% | 26.37% | 28.28% | 29.86% | 31.45% | 34.10% | 35.64% | 34.32% | 34.28% | 33.07% | 27.76% | 22.96% | 20.05% | 16.50% | 17.69% | 23.16% | 27.71% | 29.61% |
| Operating profit margin | -55.08% | -64.06% | -54.57% | -46.82% | -37.95% | -31.91% | -30.32% | -31.29% | -35.43% | -51.53% | -56.61% | -58.81% | -52.94% | -38.56% | -32.47% | -28.46% | -24.64% | -26.92% | -21.65% | -12.28% |
| Pretax margin | -106.77% | -124.93% | -105.10% | -89.45% | -37.35% | -20.76% | -17.65% | -18.88% | -27.44% | -58.82% | -72.89% | -75.49% | -88.18% | -64.26% | -50.98% | -40.31% | -22.08% | -32.51% | -46.42% | -34.96% |
| Net profit margin | -106.90% | -125.07% | -105.28% | -89.63% | -37.49% | -20.91% | -17.79% | -20.01% | -28.72% | -61.03% | -74.72% | -75.89% | -88.36% | -63.69% | -50.00% | -39.44% | -21.39% | -30.36% | -45.33% | -34.47% |
Wolfspeed Inc's profitability ratios have shown a declining trend over the past few quarters. The gross profit margin has been consistently decreasing from 29.61% in Q4 2019 to 9.57% in Q2 2024, indicating a decline in the company's ability to generate profits from its core operations.
The operating profit margin has also seen a significant decrease, moving from -12.28% in Q3 2019 to -55.08% in Q2 2024. This suggests that the company is experiencing significant operating losses relative to its revenue.
Furthermore, the pretax and net profit margins have also deteriorated, with both ratios showing negative values in recent quarters. The pretax margin decreased from -34.96% in Q4 2019 to -106.77% in Q2 2024, while the net profit margin dropped from -34.47% to -106.90% over the same period. These negative margins indicate that the company is incurring losses at the pre-tax and net profit levels.
Overall, Wolfspeed Inc's profitability ratios reflect a concerning trend of decreasing margins and increasing losses, highlighting potential financial challenges that the company may be facing.
Return on investment
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -5.58% | -5.34% | -5.36% | -5.00% | -5.07% | -5.15% | -4.82% | -6.37% | -6.33% | -8.57% | -9.97% | -9.77% | -9.11% | -7.18% | -7.63% | -7.82% | -6.83% | -9.26% | -7.78% | -5.12% |
| Return on assets (ROA) | -10.82% | -10.43% | -10.33% | -9.56% | -5.01% | -3.38% | -2.83% | -4.07% | -5.13% | -10.15% | -13.16% | -12.61% | -15.20% | -11.85% | -11.74% | -10.83% | -5.93% | -10.44% | -16.30% | -14.37% |
| Return on total capital | -9.22% | -8.98% | -9.43% | -9.34% | -4.93% | -3.13% | -2.59% | -3.67% | -4.82% | -10.03% | -13.43% | -12.82% | -16.24% | -12.12% | -12.34% | -11.29% | -5.69% | -11.39% | -17.59% | -15.14% |
| Return on equity (ROE) | -97.97% | -78.49% | -65.48% | -56.15% | -20.34% | -10.79% | -8.49% | -7.44% | -8.24% | -15.93% | -17.79% | -20.08% | -24.75% | -18.50% | -19.68% | -17.72% | -9.20% | -14.74% | -22.78% | -19.89% |
Wolfspeed Inc's profitability ratios have shown fluctuations over the periods in review.
1. Operating Return on Assets (Operating ROA): The Operating ROA has mostly been negative, indicating that the company is not effectively generating profits from its operating activities relative to its total assets. The trend shows some improvement in recent periods, but the ratio remains negative, suggesting operational inefficiencies.
2. Return on Assets (ROA): The ROA has also been predominantly negative, indicating that the company is not efficiently utilizing its assets to generate profits. While there has been some variability, the ratio remains consistently low, highlighting challenges in asset utilization and profitability.
3. Return on Total Capital: Similar to ROA, the Return on Total Capital has been negative, implying that the company's overall capital investment is not yielding positive returns. The ratio has fluctuated but remains in negative territory, reflecting ongoing difficulties in generating profits relative to the total capital employed.
4. Return on Equity (ROE): The ROE has shown significant fluctuations, with periods of both negative and positive values. The negative ROE figures indicate that the company is not efficiently utilizing equity financing to generate profits for shareholders. While there have been improvements in recent periods, the ratio remains largely negative, indicating a need for better profitability and efficiency in utilizing shareholder equity.
Overall, Wolfspeed Inc's profitability ratios reflect challenges in generating profits from assets and capital investments, as well as in effectively utilizing equity financing. The company may need to focus on improving operational efficiency, asset utilization, and overall profitability to enhance shareholder value.