Berry Global Group Inc (BERY)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 7.57% | 8.44% | 8.49% | 9.21% | 20.59% |
| Operating profit margin | 7.64% | 8.52% | 8.57% | 9.33% | 10.08% |
| Pretax margin | 4.98% | 5.86% | 6.44% | 6.54% | 6.10% |
| Net profit margin | 4.21% | 4.81% | 5.29% | 5.29% | 4.78% |
The profitability ratios of Berry Global Group Inc have shown a general trend of decrease over the past five years. The gross profit margin, which measures the efficiency of the company's production process, has declined from 20.59% in 2020 to 7.57% in 2024, indicating a decrease in the company's ability to generate profit from its core operations.
Similarly, the operating profit margin, which reflects the company's ability to control its operating expenses, has also decreased from 10.08% in 2020 to 7.64% in 2024. This suggests a decline in the company's operational efficiency and profitability.
The pretax margin, which indicates the company's profitability before taxes, has shown a decreasing trend from 6.10% in 2020 to 4.98% in 2024. This indicates a decrease in the company's ability to generate profit before accounting for taxes.
The net profit margin, which measures the company's overall profitability after all expenses have been deducted, has also decreased from 4.78% in 2020 to 4.21% in 2024. This indicates a decrease in the company's bottom-line profitability.
Overall, the declining trend in profitability ratios for Berry Global Group Inc over the past five years suggests potential challenges in maintaining and increasing profitability levels. It may be important for the company to assess and address the factors contributing to this decline in order to improve its financial performance in the future.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.64% | 6.51% | 7.32% | 7.23% | 7.06% |
| Return on assets (ROA) | 3.11% | 3.67% | 4.52% | 4.10% | 3.35% |
| Return on total capital | 25.97% | 33.55% | 38.86% | 40.63% | 56.36% |
| Return on equity (ROE) | 14.30% | 18.94% | 23.97% | 23.05% | 26.72% |
The profitability ratios of Berry Global Group Inc indicate a trend of fluctuating profitability over the past five years.
1. Operating return on assets (Operating ROA) has shown a slight decrease over the period from 7.06% in 2020 to 5.64% in 2024, suggesting a decline in the company's ability to generate operating profits from its assets.
2. Return on assets (ROA) has also exhibited some variability, with a peak of 4.52% in 2022 and a trough of 3.11% in 2024. This ratio signifies the company's overall profitability in generating earnings from its total assets.
3. Return on total capital has shown a declining trend, dropping from 56.36% in 2020 to 25.97% in 2024. This ratio indicates how efficiently the company generates profits from its total invested capital.
4. Return on equity (ROE) has fluctuated over the years, with a peak of 26.72% in 2020 and a low of 14.30% in 2024. ROE reflects the company's ability to generate profits from shareholders' equity.
In general, the decreasing trend in these profitability ratios over the years suggests that Berry Global Group Inc may be experiencing challenges in maintaining profitability and efficiency in utilizing its assets and capital. Further analysis of the company's operational performance and financial strategies may be required to address these fluctuations and improve overall profitability.