Ball Corporation (BALL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.70% | 19.03% | 16.83% | 19.74% | 20.86% |
| Operating profit margin | 10.03% | 10.16% | 8.25% | 10.28% | 10.39% |
| Pretax margin | 4.54% | 5.80% | 5.76% | 7.30% | 5.83% |
| Net profit margin | 33.98% | 5.04% | 4.68% | 6.36% | 4.97% |
The profitability ratios of Ball Corporation have shown some fluctuations over the years:
1. Gross Profit Margin: The gross profit margin has ranged from 16.83% in 2022 to a high of 20.70% in 2024. It indicates the company's ability to generate profit from its revenue after accounting for the cost of goods sold.
2. Operating Profit Margin: The operating profit margin has remained fairly stable, with a range of 8.25% in 2022 to 10.28% in 2021. This ratio reflects the efficiency of the company's core operations in generating profits.
3. Pretax Margin: The pretax margin has varied from a low of 4.54% in 2024 to a high of 7.30% in 2021. It represents the company's ability to generate profit before considering taxes, showing its operational efficiency in relation to its total revenue.
4. Net Profit Margin: The net profit margin has shown significant variability, from a low of 4.68% in 2022 to a substantial increase of 33.98% in 2024. This ratio reveals the amount of profit the company generates for each dollar of revenue after all expenses have been deducted, including taxes.
Overall, while the gross profit margin and operating profit margin have shown some stability, the pretax and net profit margins have experienced more significant fluctuations. The increase in net profit margin in 2024 signifies a potential improvement in profitability that investors and stakeholders may find noteworthy.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.71% | 7.39% | 6.36% | 7.20% | 6.71% |
| Return on assets (ROA) | 22.74% | 3.66% | 3.61% | 4.45% | 3.21% |
| Return on total capital | 13.96% | 33.78% | 34.28% | 34.63% | 28.59% |
| Return on equity (ROE) | 67.59% | 18.76% | 20.39% | 23.83% | 17.53% |
Based on the provided data, we can analyze the profitability ratios of Ball Corporation over the five-year period.
1. Operating Return on Assets (Operating ROA):
- This ratio measures the company's operating income generated per dollar of assets.
- Ball Corporation's Operating ROA has shown a slight increase from 6.71% in 2020 to 7.20% in 2021 before decreasing to 6.36% in 2022. It then improved to 7.39% in 2023 and reverted to 6.71% in 2024.
- The fluctuations in Operating ROA indicate the company's ability to efficiently generate operating income from its assets.
2. Return on Assets (ROA):
- ROA reflects the company's overall profitability in relation to its total assets.
- Ball Corporation's ROA experienced a significant increase from 3.21% in 2020 to 22.74% in 2024, with fluctuations in the interim years.
- A high ROA indicates effective utilization of assets to generate profits, which Ball Corporation demonstrated in 2024.
3. Return on Total Capital:
- This ratio assesses the return the company is generating on all of its capital, including debt and equity.
- Ball Corporation's Return on Total Capital remained relatively stable over the years, ranging from 28.59% in 2020 to 13.96% in 2024.
- The consistent performance in this ratio signifies the company's ability to generate returns for both debt and equity investors.
4. Return on Equity (ROE):
- ROE measures the profitability of the company from the perspective of its shareholders' equity.
- Ball Corporation's ROE showed an increasing trend from 17.53% in 2020 to 67.59% in 2024, indicating the company's ability to generate higher returns for its shareholders.
- The substantial rise in ROE in 2024 indicates an efficient utilization of equity to drive profitability.
In conclusion, Ball Corporation has displayed varying levels of profitability over the five-year period, with notable improvements in certain ratios such as ROA and ROE in 2024. Monitoring these ratios can provide insights into the company's operational efficiency and financial performance.