Revenue Analysis
Total and Operating Revenue: Over the periods reviewed, Total and Operating Revenue show a consistent increase from $726,247,000 in 2023-04-30 to $1,337,736,000 by 2024-01-31. This suggests significant growth in the company’s operational output and market reach.
Gross Profit: Gross Profit follows a similar upward trend, rising from $234,804,000 in 2023-04-30 to $551,614,000 by 2024-01-31. The increase in gross profit margins indicates improved efficiency in managing production or service delivery costs relative to sales.
Cost Management
Cost of Revenue: Cost of Revenue has increased in line with revenue, from $491,443,000 in 2023-04-30 to $786,122,000 by 2024-01-31, which shows the company’s scaling operations.
Operating Expense and Total Expenses: Operating Expenses remained relatively stable around $205,985,000 in mid-2023 but increased to $283,172,000 by 2024-01-31. Total Expenses also surged significantly from $683,835,000 to $1,069,294,000 in the same period.
Profitability Analysis
EBITDA and Operating Income: EBITDA and Operating Income demonstrated robust growth. EBITDA rose from $71,598,000 in 2023-04-30 to $305,537,000 by 2024-01-31. Similarly, Operating Income increased markedly from $42,412,000 to $268,442,000 over the same periods.
Pretax Income and Net Income: Pretax Income enhanced from $46,059,000 in 2023-04-30 to $272,549,000 by 2024-01-31, while Net Income surged from $37,478,000 to $202,199,000, indicating strong profitability and effective tax management.
Cash Flow Indicators
Reconciled Depreciation: Depreciation expenses have incrementally risen from $29,186,000 in 2023-04-30 to $37,095,000 by 2024-01-31, reflecting ongoing investment in assets.
Interest Expense: Interest expense data appears masked under non-operating items but tracked supported by Net Non Operating Interest Income Expenses, which were reduced from $3,647,000 to $4,107,000 across the periods.
Taxation
Tax Rate and Tax Provision: The Tax Rate has varied, with a notable decline from 0.256 in 2023-07-31 to 0.186 by 2023-04-30 before slightly increasing to 0.258 by 2024-01-31. Correspondingly, Tax Provision escalated substantially from $8,581,000 in 2023-04-30 to $70,350,000 by 2024-01-31.
Tax Effect of Unusual Items: There were no contributions from unusual items as their tax effect was zero across all periods, simplifying tax analysis.
Shareholder Metrics
Diluted and Basic EPS: Both Diluted and Basic EPS have shown improvements; EPS increased from 0.67 in 2023-04-30 to data not available in 2024-01-31 due to missing shares data for dilution calculations from later dates.
Average Shares and Net Income Available to Common Stockholders: The number of average shares showed slight increments, and concurrently, Net Income Available to Common Stockholders rose from $37,478,000 in 2023-04-30 to $202,199,000 by 2024-01-31, noticeably boosting shareholder value.
Conclusion
Based on the analysis, FIVE has demonstrated notable revenue growth and profitability over the considered periods, with efficient cost management and effective tax strategies contributing positively. However, it is recommended to monitor the rate of increase in operating expenses and ensure it aligns with revenue growth to maintain profitability. Continued investment in assets should also be balanced with depreciation strategies for sustaining long-term asset value.