Ziff Davis Inc (ZD)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 85.75% | 85.54% | 85.94% | 86.73% | 84.60% |
| Operating profit margin | 8.08% | 9.72% | 14.30% | 11.81% | 11.94% |
| Pretax margin | 7.43% | 4.81% | 8.75% | 34.06% | 16.31% |
| Net profit margin | 4.48% | 3.04% | 4.58% | 35.06% | 13.00% |
Based on the provided data for Ziff Davis Inc, we can analyze the profitability ratios as follows:
1. Gross Profit Margin:
- The gross profit margin has been consistently high over the years, ranging from 84.60% in 2020 to 85.75% in 2024. This indicates that the company has been effectively controlling its production and direct costs relative to its sales revenue.
2. Operating Profit Margin:
- The operating profit margin fluctuated from 11.81% in 2021 to 14.30% in 2022. However, it decreased to 8.08% in 2024. This suggests that the company's ability to generate profit from its core operations has been somewhat variable and declined in the most recent year.
3. Pretax Margin:
- The pretax margin experienced significant fluctuations, with a peak of 34.06% in 2021 followed by a drop to 4.81% in 2023. The margin improved to 7.43% in 2024. These fluctuations indicate potential volatility in the company's pre-tax profitability.
4. Net Profit Margin:
- The net profit margin also varied considerably, with a notable spike to 35.06% in 2021 followed by a decline to 3.04% in 2023. The margin improved slightly to 4.48% in 2024. This suggests that after-tax profitability has been less stable compared to gross profit margin.
Overall, while Ziff Davis Inc has maintained a strong gross profit margin, its operating and net profit margins have been more volatile. The company may need to focus on improving operational efficiency and cost management to ensure more consistent profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.07% | 3.82% | 5.63% | 4.44% | 3.77% |
| Return on assets (ROA) | 1.70% | 1.20% | 1.80% | 13.17% | 4.11% |
| Return on total capital | 5.22% | 3.71% | 5.49% | 18.71% | 10.33% |
| Return on equity (ROE) | 3.48% | 2.19% | 3.37% | 25.24% | 12.44% |
Based on the provided data, Ziff Davis Inc's profitability ratios show variations over the years:
1. Operating return on assets (Operating ROA)
- Ziff Davis Inc's Operating ROA has been gradually increasing from 3.77% in December 2020 to 5.63% in December 2022, but then it decreased to 3.07% by December 2024. This indicates the company's ability to generate profits from its operational assets improved initially but slightly declined in the later years.
2. Return on assets (ROA)
- The Return on Assets ratio for Ziff Davis Inc saw a significant increase from 4.11% in December 2020 to 13.17% in December 2021 before dropping to 1.80% by December 2022. It slightly improved in the following years but remained relatively low compared to the peak in 2021.
3. Return on total capital
- Ziff Davis Inc's Return on Total Capital experienced a similar trend to the ROA, with a notable increase to 18.71% in December 2021, followed by a decrease in the subsequent years to 5.22% in December 2024. This ratio indicates the company's efficiency in generating returns from both equity and debt capital.
4. Return on equity (ROE)
- The Return on Equity for Ziff Davis Inc peaked at 25.24% in December 2021, signifying high returns to the shareholders' equity. However, it substantially declined in the following years, reaching 3.48% by December 2024, indicating a decrease in profitability attributable to common shareholders' equity.
Overall, Ziff Davis Inc's profitability ratios exhibit fluctuations over the years, with varying levels of returns on assets, total capital, and equity. The company saw periods of improvement followed by declines, which may indicate changing operational efficiency and financial performance during the period analyzed.