Balchem Corporation (BCPC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.25% | 32.75% | 29.76% | 30.43% | 31.82% |
| Operating profit margin | 19.18% | 17.26% | 15.41% | 15.96% | 15.80% |
| Pretax margin | 17.45% | 14.88% | 14.19% | 15.67% | 15.12% |
| Net profit margin | 13.47% | 11.77% | 11.18% | 12.03% | 12.03% |
Balchem Corporation's profitability ratios have shown mixed performance over the years.
- The Gross Profit Margin has slightly decreased from 31.82% in December 31, 2020, to 30.43% in December 31, 2021, and further to 29.76% in December 31, 2022. However, it then rebounded, reaching 32.75% in December 31, 2023, and 35.25% in December 31, 2024, indicating an improvement in the company's ability to generate profits from its core operations.
- The Operating Profit Margin has remained relatively stable, ranging from 15.80% in December 31, 2020, to 19.18% in December 31, 2024. This indicates that Balchem has been effectively managing its operating expenses and generating profits from its core business activities.
- The Pretax Margin experienced fluctuations over the years, starting at 15.12% in December 31, 2020, reaching a peak of 17.45% in December 31, 2024. Despite the variability, the company has maintained consistent profitability before accounting for taxes.
- The Net Profit Margin has shown a similar trend to the Pretax Margin, with a slight decrease from 12.03% in December 31, 2020, to 11.18% in December 31, 2022, before rebounding to 13.47% in December 31, 2024. This indicates that Balchem has managed to improve its bottom line profitability in recent years.
Overall, while there have been fluctuations in profitability ratios, Balchem Corporation has demonstrated a generally stable financial performance with signs of improvement in its ability to generate profits and manage expenses effectively.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.61% | 9.97% | 8.94% | 10.63% | 9.53% |
| Return on assets (ROA) | 8.16% | 6.80% | 6.49% | 8.01% | 7.26% |
| Return on total capital | 15.91% | 15.17% | 15.59% | 14.82% | 13.66% |
| Return on equity (ROE) | 11.17% | 10.30% | 11.23% | 10.96% | 10.22% |
Balchem Corporation's profitability ratios show a positive trend over the years, indicating improving efficiency in generating profits from its assets and capital.
1. Operating return on assets (Operating ROA): This ratio increased steadily from 9.53% in 2020 to 11.61% in 2024, reflecting the company's ability to generate operating profits from its assets.
2. Return on assets (ROA): Balchem's overall return on assets also improved from 7.26% in 2020 to 8.16% in 2024, demonstrating that the company is effectively utilizing its assets to generate profits.
3. Return on total capital: The return on total capital increased from 13.66% in 2020 to 15.91% in 2024, suggesting that the company's financial structure and operations are efficient in generating returns for both debt and equity holders.
4. Return on equity (ROE): Balchem Corporation's return on equity ranged from 10.22% to 11.23% during the period, indicating that the company is generating satisfactory returns for its shareholders.
Overall, Balchem Corporation has shown consistent improvement in its profitability ratios, reflecting strong operational performance and effective utilization of both assets and capital to generate returns for its investors.