SKO Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Serko Ltd - Alpha Spread
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Serko Ltd
ASX:SKO

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Serko Ltd
ASX:SKO
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Price: 2.9 AUD Market Closed
Market Cap: 355.2m 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
Serko Ltd

Revenue
68.8m NZD
Operating Expenses
-87.3m NZD
Operating Income
-18.6m NZD
Other Expenses
2.7m NZD
Net Income
-15.9m NZD

Margins Comparison
Serko Ltd Competitors

Country Company Market Cap Operating
Margin
Net
Margin
NZ
Serko Ltd
ASX:SKO
353.4m AUD
-27%
-23%
CN
Cloopen Group Holding Ltd
OTC:RAASY
5.9T USD
-44%
-636%
DE
SAP SE
NYSE:SAP
259.9B USD
22%
8%
US
Salesforce Inc
NYSE:CRM
246.6B USD
19%
15%
US
Adobe Inc
NASDAQ:ADBE
237.6B USD
36%
26%
US
Intuit Inc
NASDAQ:INTU
181.3B USD
24%
18%
US
NCR Corp
LSE:0K45
175B USD
6%
-9%
US
Palantir Technologies Inc
NYSE:PLTR
82.3B USD
12%
16%
US
Synopsys Inc
NASDAQ:SNPS
77B USD
24%
25%
US
Cadence Design Systems Inc
NASDAQ:CDNS
74.8B USD
29%
25%
CA
Constellation Software Inc
TSX:CSU
92.6B CAD
14%
7%
Country NZ
Market Cap 353.4m AUD
Operating Margin
-27%
Net Margin
-23%
Country CN
Market Cap 5.9T USD
Operating Margin
-44%
Net Margin
-636%
Country DE
Market Cap 259.9B USD
Operating Margin
22%
Net Margin
8%
Country US
Market Cap 246.6B USD
Operating Margin
19%
Net Margin
15%
Country US
Market Cap 237.6B USD
Operating Margin
36%
Net Margin
26%
Country US
Market Cap 181.3B USD
Operating Margin
24%
Net Margin
18%
Country US
Market Cap 175B USD
Operating Margin
6%
Net Margin
-9%
Country US
Market Cap 82.3B USD
Operating Margin
12%
Net Margin
16%
Country US
Market Cap 77B USD
Operating Margin
24%
Net Margin
25%
Country US
Market Cap 74.8B USD
Operating Margin
29%
Net Margin
25%
Country CA
Market Cap 92.6B CAD
Operating Margin
14%
Net Margin
7%

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
Serko Ltd Competitors

Country Company Market Cap ROE ROA ROCE ROIC
NZ
Serko Ltd
ASX:SKO
353.4m AUD
-13%
-12%
-15%
-38%
CN
Cloopen Group Holding Ltd
OTC:RAASY
5.9T USD
-418%
-320%
-28%
-86%
DE
SAP SE
NYSE:SAP
259.9B USD
6%
4%
14%
8%
US
Salesforce Inc
NYSE:CRM
246.6B USD
10%
6%
10%
8%
US
Adobe Inc
NASDAQ:ADBE
237.6B USD
36%
19%
37%
28%
US
Intuit Inc
NASDAQ:INTU
181.3B USD
17%
10%
16%
13%
US
NCR Corp
LSE:0K45
175B USD
-68%
-9%
8%
15%
US
Palantir Technologies Inc
NYSE:PLTR
82.3B USD
12%
9%
8%
28%
US
Synopsys Inc
NASDAQ:SNPS
77B USD
22%
14%
18%
16%
US
Cadence Design Systems Inc
NASDAQ:CDNS
74.8B USD
29%
17%
25%
21%
CA
Constellation Software Inc
TSX:CSU
92.6B CAD
33%
6%
22%
10%
Country NZ
Market Cap 353.4m AUD
ROE
-13%
ROA
-12%
ROCE
-15%
ROIC
-38%
Country CN
Market Cap 5.9T USD
ROE
-418%
ROA
-320%
ROCE
-28%
ROIC
-86%
Country DE
Market Cap 259.9B USD
ROE
6%
ROA
4%
ROCE
14%
ROIC
8%
Country US
Market Cap 246.6B USD
ROE
10%
ROA
6%
ROCE
10%
ROIC
8%
Country US
Market Cap 237.6B USD
ROE
36%
ROA
19%
ROCE
37%
ROIC
28%
Country US
Market Cap 181.3B USD
ROE
17%
ROA
10%
ROCE
16%
ROIC
13%
Country US
Market Cap 175B USD
ROE
-68%
ROA
-9%
ROCE
8%
ROIC
15%
Country US
Market Cap 82.3B USD
ROE
12%
ROA
9%
ROCE
8%
ROIC
28%
Country US
Market Cap 77B USD
ROE
22%
ROA
14%
ROCE
18%
ROIC
16%
Country US
Market Cap 74.8B USD
ROE
29%
ROA
17%
ROCE
25%
ROIC
21%
Country CA
Market Cap 92.6B CAD
ROE
33%
ROA
6%
ROCE
22%
ROIC
10%

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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