Balchem Corporation (BCPC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.75% | 29.76% | 30.43% | 31.82% | 32.84% |
| Operating profit margin | 17.26% | 15.41% | 15.96% | 15.80% | 15.93% |
| Pretax margin | 14.88% | 14.19% | 15.67% | 15.12% | 14.99% |
| Net profit margin | 11.77% | 11.18% | 12.03% | 12.03% | 12.38% |
Balchem Corp.'s profitability ratios have shown some fluctuations over the past five years. The gross profit margin has ranged from 29.76% to 32.84%, with a slight improvement in 2023 to 32.75%. This indicates the company's ability to control production costs and generate profits from its core business activities.
The trend in operating profit margin has also been somewhat volatile, with values ranging from 15.41% to 17.26%. This ratio improved in 2023 to 17.26%, indicating effective management in controlling operating expenses and maximizing operating income.
Similarly, the pretax margin has fluctuated between 14.19% and 15.67%, with a peak in 2021 at 15.67% before decreasing slightly in 2023 to 14.88%. This metric reflects the company's ability to generate profits before accounting for taxes on its operations.
The net profit margin, a key indicator of overall profitability, has shown relatively stable performance between 11.18% and 12.38%. In 2023, the net profit margin was 11.77%, showing a marginal increase compared to the previous year. This metric indicates how well the company is able to convert revenue into net income after accounting for all expenses, including taxes.
Overall, while Balchem Corp. has shown some variability in its profitability ratios over the past five years, the company has generally maintained healthy margins, demonstrating efficient cost management and solid financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.97% | 8.94% | 10.63% | 9.53% | 8.87% |
| Return on assets (ROA) | 6.80% | 6.49% | 8.01% | 7.26% | 6.89% |
| Return on total capital | 11.53% | 10.53% | 12.76% | 11.09% | 10.25% |
| Return on equity (ROE) | 10.30% | 11.23% | 10.96% | 10.22% | 10.71% |
Balchem Corp. has shown consistent profitability over the past five years based on various profitability ratios.
1. Operating return on assets (Operating ROA) has improved from 8.87% in 2019 to 9.97% in 2023, indicating that the company's operating performance in generating profits from its assets has strengthened.
2. Return on assets (ROA) has also been on an upward trend, reaching 6.80% in 2023 from 6.89% in 2019. This ratio demonstrates the company's ability to generate profit from its total assets.
3. Return on total capital has shown an improvement from 10.34% in 2019 to 11.66% in 2023, indicating that the company is effectively utilizing both equity and debt to generate returns for its investors.
4. Return on equity (ROE) has fluctuated over the years but has been relatively stable, with 10.30% in 2023 compared to 10.71% in 2019. This ratio demonstrates the company's ability to generate returns for its shareholders based on their invested equity.
Overall, Balchem Corp. has demonstrated solid profitability ratios, showing consistent improvement or stable performance over the years. These ratios suggest that the company is effectively managing its assets, capital, and equity to generate profits for its stakeholders.