Bunge Limited (BG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 6.39% | 8.14% | 5.48% | 5.69% | 6.73% |
| Operating profit margin | 3.45% | 5.74% | 3.57% | 4.67% | 4.00% |
| Pretax margin | 2.87% | 5.12% | 3.07% | 4.34% | 3.41% |
| Net profit margin | 2.14% | 3.77% | 2.39% | 3.51% | 2.77% |
The profitability ratios of Bunge Limited have exhibited some fluctuations over the past five years.
1. Gross Profit Margin: The gross profit margin represents the percentage of revenue that exceeds the cost of goods sold. Bunge's gross profit margin declined from 6.73% in 2020 to 5.69% in 2021 and further to 5.48% in 2022. However, there was a notable improvement in 2023 reaching 8.14%, before decreasing again to 6.39% in 2024.
2. Operating Profit Margin: The operating profit margin reflects the company's ability to generate profit from its core operations. Bunge experienced fluctuations in its operating profit margin, increasing from 4.00% in 2020 to 4.67% in 2021, then dropping to 3.57% in 2022. It rebounded in 2023 to 5.74% but decreased again to 3.45% in 2024.
3. Pretax Margin: The pretax margin indicates the percentage of revenue that remains after accounting for all operating expenses but before taxes. Bunge's pretax margin varied over the years, starting at 3.41% in 2020, increasing to 4.34% in 2021, declining to 3.07% in 2022, recovering to 5.12% in 2023, and dropping to 2.87% in 2024.
4. Net Profit Margin: The net profit margin shows the percentage of revenue that translates into net profit after accounting for all expenses. Bunge's net profit margin fluctuated, starting at 2.77% in 2020, rising to 3.51% in 2021, declining to 2.39% in 2022, improving to 3.77% in 2023, and reducing to 2.14% in 2024.
Overall, while Bunge's profitability ratios have shown variability, it is essential for the company to focus on sustaining and enhancing these margins to ensure long-term financial health and success.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.36% | 13.48% | 9.76% | 11.59% | 7.00% |
| Return on assets (ROA) | 4.57% | 8.84% | 6.55% | 8.72% | 4.84% |
| Return on total capital | 20.13% | 32.87% | 26.77% | 36.61% | 27.65% |
| Return on equity (ROE) | 11.47% | 20.67% | 17.45% | 27.10% | 18.87% |
Bunge Limited's profitability ratios indicate a fluctuating performance over the five-year period from 2020 to 2024.
1. Operating Return on Assets (Operating ROA):
- Bunge's Operating ROA showed an improving trend from 7.00% in 2020 to a peak of 13.48% in 2023, before declining slightly to 7.36% in 2024.
- This ratio measures the company's operating income generated per dollar of assets, showing a strong operational performance in most years.
2. Return on Assets (ROA):
- The ROA also demonstrated variability, ranging from 4.57% in 2024 to 8.84% in 2023.
- ROA reflects the overall profitability of the company relative to its total assets, with fluctuations indicating changes in efficiency and profitability.
3. Return on Total Capital:
- The Return on Total Capital ranged from 20.13% in 2024 to 36.61% in 2021, exhibiting a downward trend overall.
- This ratio evaluates the company's ability to generate returns from all its invested capital, showing a decrease in efficiency over the years.
4. Return on Equity (ROE):
- Bunge's ROE declined from 18.87% in 2020 to 11.47% in 2024, with fluctuations in between.
- ROE measures the profitability generated for shareholders from their equity investment, with the decreasing trend indicating lower returns for equity holders over the period.
Overall, while Bunge's profitability ratios display some positive performance in certain years, there are fluctuations and downward trends, suggesting the need for further analysis to identify factors impacting the company's profitability and to implement strategies to improve overall financial performance.