Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Return on Sales
Return on Investment
Autodesk Inc., profitability ratios
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
The financial performance between 2019 and 2024 is characterized by a transition from initial losses to sustained profitability, marked by exceptionally strong top-line efficiency and a steady expansion of operational margins.
- Gross Profit Margin
- A high and stable gross margin is maintained throughout the period, consistently remaining between 88.87% and 91.11%. This stability indicates strong pricing power and a highly efficient cost of goods sold structure that has remained resilient over six fiscal years.
- Operating Profit Margin
- A significant upward trajectory is observed, moving from a negative 0.97% in 2019 to 20.52% by 2024. This trend suggests substantial improvements in operational efficiency and the successful scaling of the business model, as operating expenses have been managed effectively relative to revenue growth.
- Net Profit Margin
- Net profitability exhibited high volatility, starting at -3.14% in 2019 and reaching a peak of 31.88% in 2021. After a sharp decline in 2022, the margin normalized and stabilized at 16.48% by 2024, indicating a transition toward more predictable bottom-line performance following a period of extreme fluctuation.
- Return on Equity (ROE)
- Since 2021, ROE has shown a general downward trend from a peak of 125.14% to 48.84% in 2024. Despite this decline, the figures remain high, although the compression suggests a change in the relationship between net income and shareholder equity over the last four years.
- Return on Assets (ROA)
- ROA mirrors the recovery seen in the profit margins, rising from -1.71% in 2019 to 9.14% in 2024. The peak in 2021 at 16.60% aligns with the spike in net profit margin, followed by a stabilization phase that reflects improved asset utilization and overall profitability.
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Gross Profit Margin
Autodesk Inc., gross profit margin calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | 4,986) | 4,525) | 3,968) | 3,453) | 2,949) | 2,284) | |
| Net revenue | 5,497) | 5,005) | 4,386) | 3,790) | 3,274) | 2,570) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 90.70% | 90.41% | 90.46% | 91.11% | 90.08% | 88.87% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Accenture PLC | 32.61% | 32.34% | 31.99% | 32.38% | — | — | |
| Adobe Inc. | 89.04% | 87.87% | 87.70% | 88.18% | 86.62% | — | |
| AppLovin Corp. | 75.22% | 67.74% | 55.41% | 64.62% | — | — | |
| Cadence Design Systems Inc. | 86.05% | 89.36% | 89.57% | 89.73% | — | — | |
| Datadog Inc. | 80.79% | 80.74% | 79.30% | 77.23% | — | — | |
| International Business Machines Corp. | 56.65% | 55.45% | 54.00% | 54.90% | — | — | |
| Intuit Inc. | 78.72% | 78.13% | 81.09% | 82.53% | — | — | |
| Microsoft Corp. | 69.76% | 68.92% | 68.40% | 68.93% | — | — | |
| Oracle Corp. | 71.41% | 72.85% | 79.08% | 80.59% | — | — | |
| Palantir Technologies Inc. | 80.25% | 80.62% | 78.56% | 77.99% | — | — | |
| Palo Alto Networks Inc. | 74.35% | 72.29% | 68.76% | 70.05% | — | — | |
| Salesforce Inc. | 75.50% | 73.34% | 73.48% | 74.41% | — | — | |
| ServiceNow Inc. | 79.18% | 78.59% | 78.29% | 77.05% | — | — | |
| Synopsys Inc. | 79.68% | 79.08% | 79.07% | 79.50% | 78.44% | — | |
| Workday Inc. | 75.60% | 72.41% | 72.21% | 72.25% | — | — | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Gross profit margin = 100 × Gross profit ÷ Net revenue
= 100 × 4,986 ÷ 5,497 = 90.70%
2 Click competitor name to see calculations.
Between fiscal years 2019 and 2024, a consistent upward trajectory in both net revenue and gross profit is observed. Net revenue increased from 2,570 million US dollars to 5,497 million US dollars, while gross profit grew from 2,284 million US dollars to 4,986 million US dollars over the same period.
- Revenue and Profit Scaling
- The company demonstrated strong top-line growth, with net revenue more than doubling across the six-year window. This expansion in scale was mirrored by gross profit, which grew by approximately 118%, indicating that the cost of goods sold remained well-controlled relative to revenue growth.
- Gross Profit Margin Trends
- The gross profit margin remained exceptionally high and stable, consistently exceeding 88%. An initial upward trend was noted from 88.87% in 2019 to a peak of 91.11% in 2021. Following this peak, the margin experienced a slight contraction, stabilizing within a narrow range between 90.41% and 90.70% from 2022 through 2024.
- Operational Efficiency
- The stability of the gross profit margin, despite significant increases in absolute revenue and profit, suggests a highly scalable business model. The ability to maintain a margin above 90% for the majority of the analyzed period reflects strong pricing power and efficient management of direct costs associated with revenue generation.
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Operating Profit Margin
Autodesk Inc., operating profit margin calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Income (loss) from operations | 1,128) | 989) | 618) | 629) | 343) | (25) | |
| Net revenue | 5,497) | 5,005) | 4,386) | 3,790) | 3,274) | 2,570) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 20.52% | 19.76% | 14.08% | 16.60% | 10.48% | -0.97% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Accenture PLC | 14.79% | 13.74% | 15.21% | 15.08% | — | — | |
| Adobe Inc. | 31.35% | 34.26% | 34.64% | 36.76% | 32.93% | — | |
| AppLovin Corp. | 39.78% | 19.74% | -1.70% | 5.37% | — | — | |
| Cadence Design Systems Inc. | 29.10% | 30.59% | 30.15% | 26.07% | — | — | |
| Datadog Inc. | 2.02% | -1.57% | -3.50% | -1.86% | — | — | |
| International Business Machines Corp. | 14.95% | 15.17% | 13.50% | 11.97% | — | — | |
| Intuit Inc. | 22.29% | 21.86% | 20.20% | 25.95% | — | — | |
| Microsoft Corp. | 44.64% | 41.77% | 42.06% | 41.59% | — | — | |
| Oracle Corp. | 28.99% | 26.21% | 25.74% | 37.58% | — | — | |
| Palantir Technologies Inc. | 10.83% | 5.39% | -8.46% | -26.66% | — | — | |
| Palo Alto Networks Inc. | 8.52% | 5.62% | -3.43% | -7.15% | — | — | |
| Salesforce Inc. | 14.38% | 3.29% | 2.07% | 2.14% | — | — | |
| ServiceNow Inc. | 12.42% | 8.49% | 4.90% | 4.36% | — | — | |
| Synopsys Inc. | 22.13% | 21.72% | 22.87% | 17.48% | 16.83% | — | |
| Workday Inc. | 2.52% | -3.57% | -2.27% | -5.76% | — | — | |
| Operating Profit Margin, Sector | |||||||
| Software & Services | 30.48% | 27.37% | 27.20% | 28.02% | — | — | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | 26.46% | 24.34% | 26.23% | 26.58% | — | — | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Operating profit margin = 100 × Income (loss) from operations ÷ Net revenue
= 100 × 1,128 ÷ 5,497 = 20.52%
2 Click competitor name to see calculations.
The analysis of the operating performance from fiscal year 2019 through 2024 reveals a substantial recovery and subsequent growth phase in profitability. The company transitioned from an operating loss in 2019 to a sustained period of margin expansion, concluding the period with significant increases in both absolute operating income and the corresponding profit margin.
- Revenue Trajectory
- Net revenue exhibited consistent year-over-year growth, increasing from US$ 2,570 million in 2019 to US$ 5,497 million in 2024. This steady climb indicates a sustained expansion of the top line throughout the analyzed six-year period.
- Operating Income Evolution
- Income from operations shifted from a loss of US$ 25 million in 2019 to a profit of US$ 1,128 million by 2024. A period of accelerated growth in absolute operating profit is observed between 2022 and 2024, where income rose from US$ 618 million to over US$ 1.1 billion.
- Operating Profit Margin Trends
- The operating profit margin demonstrated a strong overall upward trend, moving from -0.97% in 2019 to 20.52% in 2024. A temporary contraction occurred in 2022, with the margin decreasing from 16.60% to 14.08%, before rebounding strongly in 2023 and 2024 to reach a peak of 20.52%.
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Net Profit Margin
Autodesk Inc., net profit margin calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) | 906) | 823) | 497) | 1,208) | 215) | (81) | |
| Net revenue | 5,497) | 5,005) | 4,386) | 3,790) | 3,274) | 2,570) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 16.48% | 16.44% | 11.33% | 31.88% | 6.55% | -3.14% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Accenture PLC | 11.19% | 10.72% | 11.17% | 11.69% | — | — | |
| Adobe Inc. | 25.85% | 27.97% | 27.01% | 30.55% | 40.88% | — | |
| AppLovin Corp. | 33.55% | 10.87% | -6.84% | 1.27% | — | — | |
| Cadence Design Systems Inc. | 22.74% | 25.46% | 23.84% | 23.29% | — | — | |
| Datadog Inc. | 6.85% | 2.28% | -2.99% | -2.02% | — | — | |
| International Business Machines Corp. | 9.60% | 12.13% | 2.71% | 10.01% | — | — | |
| Intuit Inc. | 18.19% | 16.59% | 16.23% | 21.41% | — | — | |
| Microsoft Corp. | 35.96% | 34.15% | 36.69% | 36.45% | — | — | |
| Oracle Corp. | 19.76% | 17.02% | 15.83% | 33.96% | — | — | |
| Palantir Technologies Inc. | 16.13% | 9.43% | -19.61% | -33.75% | — | — | |
| Palo Alto Networks Inc. | 32.11% | 6.38% | -4.85% | -11.72% | — | — | |
| Salesforce Inc. | 11.87% | 0.66% | 5.45% | 19.16% | — | — | |
| ServiceNow Inc. | 12.97% | 19.30% | 4.49% | 3.90% | — | — | |
| Synopsys Inc. | 36.94% | 21.05% | 19.38% | 18.02% | 18.03% | — | |
| Workday Inc. | 19.02% | -5.90% | 0.57% | -6.54% | — | — | |
| Net Profit Margin, Sector | |||||||
| Software & Services | 24.83% | 21.91% | 21.55% | 25.12% | — | — | |
| Net Profit Margin, Industry | |||||||
| Information Technology | 20.48% | 20.24% | 22.27% | 23.48% | — | — | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Net profit margin = 100 × Net income (loss) ÷ Net revenue
= 100 × 906 ÷ 5,497 = 16.48%
2 Click competitor name to see calculations.
An analysis of financial performance from 2019 to 2024 reveals a consistent expansion in net revenue coupled with significant volatility in net income and resulting profit margins.
- Revenue Growth Trajectory
- Net revenue exhibited an uninterrupted upward trend over the six-year period, increasing from 2,570 million US dollars in 2019 to 5,497 million US dollars in 2024. This consistent growth indicates a steady expansion of the top-line financial base.
- Net Profit Margin Volatility
- The net profit margin experienced substantial fluctuations, beginning at -3.14% in 2019 due to a net loss of 81 million US dollars. A significant peak occurred in 2021, where the margin reached 31.88%, corresponding to a net income of 1,208 million US dollars. This peak was followed by a sharp correction in 2022, with the margin dropping to 11.33% as net income decreased to 497 million US dollars.
- Recent Margin Stabilization
- Following the volatility observed between 2021 and 2022, profitability has entered a phase of stabilization. For the fiscal years ending January 31, 2023, and January 31, 2024, the net profit margin remained nearly constant at 16.44% and 16.48%, respectively. During this period, net income recovered steadily, reaching 906 million US dollars by 2024.
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Return on Equity (ROE)
Autodesk Inc., ROE calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) | 906) | 823) | 497) | 1,208) | 215) | (81) | |
| Stockholders’ equity (deficit) | 1,855) | 1,145) | 849) | 966) | (139) | (211) | |
| Profitability Ratio | |||||||
| ROE1 | 48.84% | 71.88% | 58.53% | 125.14% | — | — | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Accenture PLC | 25.68% | 26.75% | 31.11% | 30.25% | — | — | |
| Adobe Inc. | 39.42% | 32.86% | 33.85% | 32.59% | 39.66% | — | |
| AppLovin Corp. | 144.96% | 28.39% | -10.13% | 1.66% | — | — | |
| Cadence Design Systems Inc. | 22.58% | 30.58% | 30.93% | 25.39% | — | — | |
| Datadog Inc. | 6.77% | 2.40% | -3.56% | -1.99% | — | — | |
| International Business Machines Corp. | 22.06% | 33.29% | 7.47% | 30.38% | — | — | |
| Intuit Inc. | 16.07% | 13.81% | 12.57% | 20.89% | — | — | |
| Microsoft Corp. | 32.83% | 35.09% | 43.68% | 43.15% | — | — | |
| Oracle Corp. | 120.26% | 792.45% | — | 262.43% | — | — | |
| Palantir Technologies Inc. | 9.24% | 6.04% | -14.57% | -22.71% | — | — | |
| Palo Alto Networks Inc. | 49.86% | 25.15% | -127.14% | -78.63% | — | — | |
| Salesforce Inc. | 6.93% | 0.36% | 2.48% | 9.81% | — | — | |
| ServiceNow Inc. | 14.83% | 22.69% | 6.46% | 6.22% | — | — | |
| Synopsys Inc. | 25.17% | 20.01% | 17.85% | 14.31% | 13.54% | — | |
| Workday Inc. | 17.09% | -6.57% | 0.65% | -8.62% | — | — | |
| ROE, Sector | |||||||
| Software & Services | 28.81% | 28.49% | 30.78% | 35.91% | — | — | |
| ROE, Industry | |||||||
| Information Technology | 28.82% | 31.26% | 38.03% | 41.64% | — | — | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
ROE = 100 × Net income (loss) ÷ Stockholders’ equity (deficit)
= 100 × 906 ÷ 1,855 = 48.84%
2 Click competitor name to see calculations.
The financial trajectory between 2019 and 2024 is characterized by a significant structural recovery, transitioning from a state of negative equity and net losses to consistent profitability and a strengthened capital base.
- Net Income Trends
- A transition from a net loss of 81 million US dollars in 2019 to sustained profitability is observed. Net income peaked in 2021 at 1,208 million US dollars before experiencing a correction in 2022. A steady recovery followed, with income rising to 823 million US dollars in 2023 and reaching 906 million US dollars by 2024.
- Stockholders' Equity Evolution
- The capital structure underwent a fundamental shift, moving from a deficit of 211 million US dollars in 2019 to a positive position of 1,855 million US dollars by 2024. This represents a consistent strengthening of the balance sheet, with the most substantial increase occurring between 2023 and 2024.
- Return on Equity (ROE) Analysis
- ROE was not calculable during the deficit periods of 2019 and 2020. Upon the transition to positive equity in 2021, an exceptionally high ROE of 125.14% was recorded, driven by the combination of peak net income and a relatively small equity base. In subsequent years, a downward trend in ROE is observed, falling to 48.84% by 2024. This decline is primarily attributed to the rapid expansion of stockholders' equity, which increased the denominator of the ratio more significantly than the growth in net income.
Overall, the results indicate a normalization of profitability ratios. The compression of ROE does not signal a decline in operational performance, but rather a reflection of a more robust and less leveraged equity position.
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Return on Assets (ROA)
Autodesk Inc., ROA calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) | 906) | 823) | 497) | 1,208) | 215) | (81) | |
| Total assets | 9,912) | 9,438) | 8,607) | 7,280) | 6,179) | 4,729) | |
| Profitability Ratio | |||||||
| ROA1 | 9.14% | 8.72% | 5.77% | 16.60% | 3.47% | -1.71% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Accenture PLC | 12.99% | 13.41% | 14.55% | 13.68% | — | — | |
| Adobe Inc. | 18.39% | 18.23% | 17.51% | 17.70% | 21.66% | — | |
| AppLovin Corp. | 26.92% | 6.66% | -3.30% | 0.58% | — | — | |
| Cadence Design Systems Inc. | 11.76% | 18.36% | 16.53% | 15.87% | — | — | |
| Datadog Inc. | 3.18% | 1.23% | -1.67% | -0.87% | — | — | |
| International Business Machines Corp. | 4.39% | 5.55% | 1.29% | 4.35% | — | — | |
| Intuit Inc. | 9.22% | 8.58% | 7.45% | 13.29% | — | — | |
| Microsoft Corp. | 17.21% | 17.56% | 19.94% | 18.36% | — | — | |
| Oracle Corp. | 7.42% | 6.33% | 6.15% | 10.48% | — | — | |
| Palantir Technologies Inc. | 7.29% | 4.64% | -10.80% | -16.02% | — | — | |
| Palo Alto Networks Inc. | 12.89% | 3.03% | -2.18% | -4.87% | — | — | |
| Salesforce Inc. | 4.14% | 0.21% | 1.52% | 6.14% | — | — | |
| ServiceNow Inc. | 6.99% | 9.96% | 2.44% | 2.13% | — | — | |
| Synopsys Inc. | 17.31% | 11.90% | 10.45% | 8.66% | 8.27% | — | |
| Workday Inc. | 8.39% | -2.72% | 0.28% | -3.24% | — | — | |
| ROA, Sector | |||||||
| Software & Services | 12.26% | 11.19% | 11.32% | 12.19% | — | — | |
| ROA, Industry | |||||||
| Information Technology | 11.80% | 12.34% | 14.33% | 14.52% | — | — | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 906 ÷ 9,912 = 9.14%
2 Click competitor name to see calculations.
The financial performance over the six-year period is characterized by a consistent expansion of the asset base coupled with significant volatility in net income, which has directly dictated the fluctuations in the Return on Assets (ROA).
- Total Asset Growth
- A steady and uninterrupted upward trend in total assets is observed, increasing from US$ 4,729 million in 2019 to US$ 9,912 million in 2024. This consistent growth indicates a continuous accumulation of resources and a substantial expansion of the company's operational scale over the period.
- Net Income Volatility
- Net income experienced considerable fluctuations, beginning with a loss of US$ 81 million in 2019 before shifting to profitability. A significant peak occurred in 2021 with net income reaching US$ 1,208 million, followed by a sharp contraction to US$ 497 million in 2022. Since 2022, a recovery phase has been evident, with income rising to US$ 906 million by 2024.
- Return on Assets (ROA) Interpretation
- The ROA figures closely track the movements in net income. The ratio moved from a negative 1.71% in 2019 to a period high of 16.60% in 2021. Although the ratio declined to 5.77% in 2022, it has demonstrated a gradual recovery over the final two years, reaching 9.14% by January 31, 2024. This indicates that while asset efficiency peaked in 2021, the company has since stabilized its ability to generate profit from its expanded asset base.
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