Woodward Inc (WWD)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 16.25% | 10.75% | 10.90% | 12.77% | 11.93% |
| Operating profit margin | 1.79% | -4.85% | -4.21% | -2.89% | -5.39% |
| Pretax margin | 13.61% | 9.62% | 8.49% | 11.10% | 11.42% |
| Net profit margin | 11.18% | 8.11% | 7.30% | 9.42% | 9.74% |
Woodward Inc's profitability ratios show a fluctuating trend over the past five years. The gross profit margin has been generally increasing, reaching 16.25% in 2024, indicating an improvement in the company's ability to generate profits from its core operations.
However, the operating profit margin has been volatile and was negative in 2023 and 2021, signifying that the company faced challenges in controlling its operating expenses efficiently.
Meanwhile, the pretax margin has shown an overall increasing trend, reaching 13.61% in 2024, suggesting that the company's pre-tax profitability has improved over the years.
The net profit margin has also shown an increasing trend, indicating that Woodward Inc has been successful in managing its overall expenses to generate higher net income relative to its revenue.
Overall, while there have been fluctuations in individual profitability ratios, the general trend indicates an improvement in Woodward Inc's profitability performance over the past five years.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.37% | -3.47% | -2.60% | -1.56% | -3.41% |
| Return on assets (ROA) | 8.54% | 5.79% | 4.51% | 5.10% | 6.16% |
| Return on total capital | 18.28% | 11.91% | 8.98% | 9.50% | 11.64% |
| Return on equity (ROE) | 17.14% | 11.22% | 9.03% | 9.42% | 12.06% |
Woodward Inc's profitability ratios have shown mixed performance over the past five years.
1. Operating return on assets (Operating ROA): This ratio indicates the company's operating profit generated per dollar of assets. Woodward Inc has shown a positive trend in recent years, with the ratio improving from negative figures in 2020 and 2021 to a positive 1.37% in 2024. This suggests that the company is becoming more efficient in generating operating profits from its assets.
2. Return on assets (ROA): ROA measures the overall profitability of the company by assessing how efficiently it uses its assets to generate profit. Woodward Inc's ROA has fluctuated over the years, with the highest being 8.54% in 2024. This indicates that the company has been able to generate a satisfactory level of profit relative to its total assets.
3. Return on total capital: This ratio provides insight into how effectively the company generates profit from both debt and equity capital. Woodward Inc has shown a positive trend in this ratio over the years, reaching 18.28% in 2024. This suggests that the company has been able to generate higher returns on the total capital invested in the business.
4. Return on equity (ROE): ROE measures the profitability of the company from the perspective of its shareholders. Woodward Inc has demonstrated a consistent performance in terms of ROE, with the ratio fluctuating between 9.03% and 17.14% over the past five years. This indicates that the company has been able to provide satisfactory returns to its equity investors.
Overall, Woodward Inc's profitability ratios show improvement in recent years, indicating that the company has been working on enhancing its operational efficiency and generating higher returns for its stakeholders. However, continued monitoring of these ratios is important to ensure sustained profitability in the future.