Ziff Davis Inc (ZD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 85.54% | 85.94% | 86.73% | 84.60% | 82.17% |
| Operating profit margin | 9.72% | 14.30% | 11.81% | 11.94% | 8.40% |
| Pretax margin | 4.81% | 8.75% | 34.06% | 16.31% | 22.14% |
| Net profit margin | 3.04% | 4.58% | 35.06% | 13.00% | 20.83% |
Looking at the profitability ratios of Ziff Davis Inc over the past five years, we observe the following trends:
1. Gross Profit Margin:
- The gross profit margin has shown stability over the years, ranging from 82.70% in 2019 to 86.73% in 2021. Throughout the period, the company has consistently maintained a high level of gross profitability, with values above 85%.
2. Operating Profit Margin:
- The operating profit margin has displayed some variability, with the highest value of 22.46% in 2020 and the lowest of 13.89% in 2023. Despite fluctuations, the company has generally managed to generate operating profits within the range of 13.89% to 22.46%.
3. Pretax Margin:
- The pretax margin experienced significant fluctuations, with a substantial decline from 27.33% in 2021 to 4.81% in 2023. The company's profitability before taxes varied widely, indicating potential challenges in managing expenses and generating sufficient pre-tax income.
4. Net Profit Margin:
- The net profit margin also exhibited fluctuations, with the highest value of 35.04% in 2021 and the lowest of 3.04% in 2023. This suggests that Ziff Davis Inc has had varying levels of profitability after accounting for all expenses and taxes.
In summary, while Ziff Davis Inc has maintained a consistently high gross profit margin, its operating, pretax, and net profit margins have shown more variability over the years. The company's profitability ratios indicate the need for a closer examination of cost management and revenue generation strategies to ensure sustained profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.82% | 5.63% | 4.44% | 3.77% | 2.52% |
| Return on assets (ROA) | 1.20% | 1.80% | 13.17% | 4.11% | 6.24% |
| Return on total capital | 3.71% | 5.49% | 18.71% | 10.33% | 10.90% |
| Return on equity (ROE) | 2.19% | 3.37% | 25.24% | 12.44% | 16.69% |
Ziff Davis Inc's profitability ratios indicate varied performance over the years. The operating return on assets (Operating ROA) decreased from 6.41% in 2022 to 5.46% in 2023, suggesting a decline in the company's ability to generate operating profits from its assets. However, the ROA decreased significantly from 13.17% in 2021 to 1.20% in 2023, indicating a substantial drop in the company's overall profitability relative to its total assets.
In terms of return on total capital, there was a decrease from 7.56% in 2022 to 6.22% in 2023, indicating a decline in the company's ability to generate returns from its total invested capital. The return on equity (ROE) also saw a decrease from 3.37% in 2022 to 2.19% in 2023, signaling a lower return for the company's shareholders compared to the previous year.
Overall, Ziff Davis Inc's profitability ratios have shown a mixed performance, with declines in some key metrics in 2023 compared to the previous years. This analysis suggests that the company may need to assess its operational efficiency and capital utilization to improve its overall profitability in the future.