GLOBAL Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Global Education Ltd - Alpha Spread

Global Education Ltd
NSE:GLOBAL

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Global Education Ltd
NSE:GLOBAL
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Price: 195.07 INR -3.05% Market Closed
Market Cap: 4B INR
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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
Global Education Ltd

Revenue
746.6m INR
Cost of Revenue
-170.3m INR
Gross Profit
576.3m INR
Operating Expenses
-192.9m INR
Operating Income
383.4m INR
Other Expenses
-59.6m INR
Net Income
323.7m INR

Margins Comparison
Global Education Ltd Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
IN
Global Education Ltd
NSE:GLOBAL
4B INR
77%
51%
43%
ZA
Advtech Ltd
JSE:ADH
16.6B Zac
83%
20%
12%
US
Duolingo Inc
NASDAQ:DUOL
11.5B USD
73%
6%
10%
CN
New Oriental Education & Technology Group Inc
NYSE:EDU
10.4B USD
52%
8%
7%
US
Bright Horizons Family Solutions Inc
NYSE:BFAM
8B USD
22%
8%
4%
ZA
Curro Holdings Ltd
JSE:COH
7.8B Zac
0%
18%
1%
ZA
Stadio Holdings Ltd
JSE:SDO
4.9B Zac
0%
23%
15%
CN
TAL Education Group
NYSE:TAL
4.9B USD
54%
-2%
3%
US
Grand Canyon Education Inc
NASDAQ:LOPE
4.2B USD
53%
27%
22%
US
PowerSchool Holdings Inc
NYSE:PWSC
3.8B USD
59%
2%
-8%
US
Stride Inc
NYSE:LRN
3.6B USD
37%
12%
10%
Country IN
Market Cap 4B INR
Gross Margin
77%
Operating Margin
51%
Net Margin
43%
Country ZA
Market Cap 16.6B Zac
Gross Margin
83%
Operating Margin
20%
Net Margin
12%
Country US
Market Cap 11.5B USD
Gross Margin
73%
Operating Margin
6%
Net Margin
10%
Country CN
Market Cap 10.4B USD
Gross Margin
52%
Operating Margin
8%
Net Margin
7%
Country US
Market Cap 8B USD
Gross Margin
22%
Operating Margin
8%
Net Margin
4%
Country ZA
Market Cap 7.8B Zac
Gross Margin
0%
Operating Margin
18%
Net Margin
1%
Country ZA
Market Cap 4.9B Zac
Gross Margin
0%
Operating Margin
23%
Net Margin
15%
Country CN
Market Cap 4.9B USD
Gross Margin
54%
Operating Margin
-2%
Net Margin
3%
Country US
Market Cap 4.2B USD
Gross Margin
53%
Operating Margin
27%
Net Margin
22%
Country US
Market Cap 3.8B USD
Gross Margin
59%
Operating Margin
2%
Net Margin
-8%
Country US
Market Cap 3.6B USD
Gross Margin
37%
Operating Margin
12%
Net Margin
10%

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
Global Education Ltd Competitors

Country Company Market Cap ROE ROA ROCE ROIC
IN
Global Education Ltd
NSE:GLOBAL
4B INR
38%
35%
45%
34%
ZA
Advtech Ltd
JSE:ADH
16.6B Zac
18%
10%
23%
14%
US
Duolingo Inc
NASDAQ:DUOL
11.5B USD
10%
7%
5%
16%
CN
New Oriental Education & Technology Group Inc
NYSE:EDU
10.4B USD
8%
4%
8%
11%
US
Bright Horizons Family Solutions Inc
NYSE:BFAM
8B USD
8%
3%
7%
4%
ZA
Curro Holdings Ltd
JSE:COH
7.8B Zac
1%
0%
7%
2%
ZA
Stadio Holdings Ltd
JSE:SDO
4.9B Zac
12%
9%
16%
11%
CN
TAL Education Group
NYSE:TAL
4.9B USD
1%
1%
-1%
-1%
US
Grand Canyon Education Inc
NASDAQ:LOPE
4.2B USD
31%
24%
33%
34%
US
PowerSchool Holdings Inc
NYSE:PWSC
3.8B USD
-4%
-2%
0%
0%
US
Stride Inc
NYSE:LRN
3.6B USD
19%
11%
16%
15%
Country IN
Market Cap 4B INR
ROE
38%
ROA
35%
ROCE
45%
ROIC
34%
Country ZA
Market Cap 16.6B Zac
ROE
18%
ROA
10%
ROCE
23%
ROIC
14%
Country US
Market Cap 11.5B USD
ROE
10%
ROA
7%
ROCE
5%
ROIC
16%
Country CN
Market Cap 10.4B USD
ROE
8%
ROA
4%
ROCE
8%
ROIC
11%
Country US
Market Cap 8B USD
ROE
8%
ROA
3%
ROCE
7%
ROIC
4%
Country ZA
Market Cap 7.8B Zac
ROE
1%
ROA
0%
ROCE
7%
ROIC
2%
Country ZA
Market Cap 4.9B Zac
ROE
12%
ROA
9%
ROCE
16%
ROIC
11%
Country CN
Market Cap 4.9B USD
ROE
1%
ROA
1%
ROCE
-1%
ROIC
-1%
Country US
Market Cap 4.2B USD
ROE
31%
ROA
24%
ROCE
33%
ROIC
34%
Country US
Market Cap 3.8B USD
ROE
-4%
ROA
-2%
ROCE
0%
ROIC
0%
Country US
Market Cap 3.6B USD
ROE
19%
ROA
11%
ROCE
16%
ROIC
15%

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.

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