Berry Global Group Inc (BERY)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.44% | 8.49% | 9.21% | 20.59% | 18.24% |
| Operating profit margin | 8.52% | 8.57% | 9.33% | 10.08% | 10.97% |
| Pretax margin | 5.86% | 6.44% | 6.54% | 6.10% | 5.52% |
| Net profit margin | 4.81% | 5.29% | 5.29% | 4.78% | 4.55% |
Based on the provided data, Berry Global Group Inc's profitability ratios can be analyzed as follows:
1. Gross Profit Margin:
The gross profit margin measures the percentage of revenue that exceeds the cost of goods sold. Berry Global Group Inc's gross profit margin has shown some variability over the past five years, with a peak of 20.57% in 2020 and a low of 16.36% in 2022. In 2023, the margin stood at 18.24%, indicating that for every dollar of revenue, the company retained 18.24 cents after accounting for the cost of goods sold.
2. Operating Profit Margin:
The operating profit margin reflects a company's ability to generate profit from its core business operations. Berry Global Group Inc's operating profit margin has ranged between 8.73% and 10.74% over the past five years. In 2023, the operating profit margin stood at 9.33%, indicating that the company earned 9.33 cents of profit for every dollar of sales, after deducting operating expenses.
3. Pretax Margin:
The pretax margin represents the percentage of each dollar of revenue that remains as pre-tax profit after accounting for all expenses. Berry Global Group Inc's pretax margin has fluctuated between 5.52% and 6.53% over the past five years. In 2023, the pretax margin stood at 5.86%, indicating that the company retained 5.86 cents of profit before taxes for every dollar of sales.
4. Net Profit Margin:
The net profit margin measures the percentage of revenue that translates into net income after all expenses, including taxes. Berry Global Group Inc's net profit margin has shown some variability, ranging from 4.55% to 5.29% over the past five years. In 2023, the net profit margin stood at 4.81%, indicating that the company retained 4.81 cents of profit for every dollar of sales after accounting for all expenses.
Overall, Berry Global Group Inc's profitability ratios demonstrate some variability over the past five years, with the company maintaining positive margins, albeit with fluctuations in profitability.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.51% | 7.32% | 7.23% | 7.06% | 5.91% |
| Return on assets (ROA) | 3.67% | 4.52% | 4.10% | 3.35% | 2.45% |
| Return on total capital | 33.55% | 38.86% | 40.63% | 56.36% | 60.20% |
| Return on equity (ROE) | 18.94% | 23.97% | 23.05% | 26.72% | 24.97% |
The profitability ratios of Berry Global Group Inc indicate consistent performance over the past five years. The operating return on assets (Operating ROA) has shown a slight decrease from 7.51% in 2021 to 7.12% in 2023, still remaining relatively stable. This ratio measures the company's ability to generate operating income from its assets, and the downward trend may warrant further investigation into the company's operational efficiency.
The overall return on assets (ROA) has also exhibited variability, with a dip from 4.52% in 2022 to 3.67% in 2023. While the company's ability to generate profit from its assets has fluctuated, it is essential to assess the reasons behind this decline to ensure sustainable performance.
The return on total capital has remained steadfast, showcasing the company's ability to generate a stable return for all providers of capital. The 2023 figure of 9.68% maintains the company's trend of consistency, indicating a strong utilization of both equity and debt capital to generate returns.
Similarly, the return on equity (ROE) has experienced a slight decrease from 23.97% in 2022 to 18.94% in 2023. This ratio demonstrates the company's ability to deliver returns to its shareholders. Despite the decrease, the ROE remains at a commendable level, highlighting management's effectiveness in generating profits from shareholder equity.
Overall, while there have been fluctuations in certain ratios, the company's profitability remains relatively robust, with a consistent ability to generate returns on assets, capital, and equity. It is important for stakeholders to keep a close eye on the trends and scrutinize the underlying factors behind the changes in the profitability ratios.