D2O Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Duxton Water Ltd - Alpha Spread

Duxton Water Ltd
ASX:D2O

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Duxton Water Ltd
ASX:D2O
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Price: 1.355 AUD 0.74% Market Closed
Market Cap: 199.8m AUD
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Duxton Water Ltd

Revenue
31.1m AUD
Cost of Revenue
-462k AUD
Gross Profit
30.7m AUD
Operating Expenses
-4.4m AUD
Operating Income
26.3m AUD
Other Expenses
-14.5m AUD
Net Income
11.8m AUD

Margins Comparison
Duxton Water Ltd Competitors

Country AU
Market Cap 211.9m AUD
Gross Margin
99%
Operating Margin
84%
Net Margin
38%
Country US
Market Cap 28.7B USD
Gross Margin
0%
Operating Margin
36%
Net Margin
22%
Country BR
Market Cap 64.7B BRL
Gross Margin
40%
Operating Margin
29%
Net Margin
15%
Country UK
Market Cap 7.9B GBP
Gross Margin
0%
Operating Margin
22%
Net Margin
6%
Country US
Market Cap 10.4B USD
Gross Margin
89%
Operating Margin
35%
Net Margin
29%
Country UK
Market Cap 7.2B GBP
Gross Margin
78%
Operating Margin
25%
Net Margin
7%
Country BR
Market Cap 4.5B EUR
Gross Margin
40%
Operating Margin
29%
Net Margin
15%
Country HK
Market Cap 30.1B HKD
Gross Margin
40%
Operating Margin
22%
Net Margin
12%
Country US
Market Cap 3.2B USD
Gross Margin
71%
Operating Margin
19%
Net Margin
18%
Country US
Market Cap 3.2B USD
Gross Margin
83%
Operating Margin
31%
Net Margin
19%
Country CN
Market Cap 20.6B CNY
Gross Margin
31%
Operating Margin
21%
Net Margin
6%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Duxton Water Ltd Competitors

Country AU
Market Cap 211.9m AUD
ROE
7%
ROA
4%
ROCE
9%
ROIC
6%
Country US
Market Cap 28.7B USD
ROE
10%
ROA
3%
ROCE
5%
ROIC
4%
Country BR
Market Cap 64.7B BRL
ROE
13%
ROA
7%
ROCE
14%
ROIC
10%
Country UK
Market Cap 7.9B GBP
ROE
10%
ROA
1%
ROCE
4%
ROIC
3%
Country US
Market Cap 10.4B USD
ROE
9%
ROA
3%
ROCE
4%
ROIC
4%
Country UK
Market Cap 7.2B GBP
ROE
5%
ROA
1%
ROCE
3%
ROIC
3%
Country BR
Market Cap 4.5B EUR
ROE
13%
ROA
7%
ROCE
14%
ROIC
10%
Country HK
Market Cap 30.1B HKD
ROE
7%
ROA
2%
ROCE
6%
ROIC
3%
Country US
Market Cap 3.2B USD
ROE
12%
ROA
4%
ROCE
5%
ROIC
5%
Country US
Market Cap 3.2B USD
ROE
13%
ROA
5%
ROCE
9%
ROIC
6%
Country CN
Market Cap 20.6B CNY
ROE
5%
ROA
1%
ROCE
5%
ROIC
4%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

See Also

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