Chemours Co (CC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.45% | 24.34% | 22.50% | 22.52% | 19.99% |
| Operating profit margin | -4.21% | 11.63% | 11.01% | 7.75% | 6.54% |
| Pretax margin | -5.48% | 11.16% | 11.01% | 3.78% | -2.33% |
| Net profit margin | -4.09% | 8.71% | 9.90% | 4.62% | -0.98% |
The profitability ratios of Chemours Co have shown fluctuations over the past five years. The gross profit margin has varied between 19.99% and 24.34%, with a slight decrease in 2023 to 22.45%. This metric indicates the company's efficiency in generating profits from its revenue after accounting for the cost of goods sold.
The operating profit margin saw significant changes, ranging from 6.54% in 2019 to a high of 11.63% in 2022, before dropping to -4.21% in 2023. This indicates the company's ability to generate profits from its core operations before considering interest and taxes.
The pretax margin also experienced fluctuations, with negative results in 2020 and 2023. It peaked at 11.16% in 2022, showcasing the company's ability to generate profits before accounting for taxes.
The net profit margin, a key measure of overall profitability, ranged from -0.98% in 2019 to 9.90% in 2021, with a decline to -4.09% in 2023. This ratio reflects the company's ability to translate revenues into net income after all expenses have been deducted.
Overall, Chemours Co's profitability ratios indicate fluctuations in profitability over the past five years. The company needs to focus on improving operational efficiency and cost management to enhance its overall profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2.97% | 10.10% | 8.95% | 5.18% | 4.79% |
| Return on assets (ROA) | -2.88% | 7.57% | 8.05% | 3.09% | -0.72% |
| Return on total capital | -2.35% | 19.25% | 17.92% | 8.07% | 1.78% |
| Return on equity (ROE) | -32.29% | 52.21% | 56.24% | 26.94% | -7.55% |
Chemours Co's profitability ratios show mixed performance over the past five years.
Operating Return on Assets (Operating ROA) has experienced fluctuations, ranging from a low of -2.97% in 2023 to a high of 10.10% in 2022. This ratio measures the company's ability to generate profits from its assets excluding non-operating items.
Return on Assets (ROA) also exhibits variability, with a low of -2.88% in 2023 and a high of 8.05% in 2021. ROA reflects the company's overall efficiency in generating profits from its total assets.
Return on Total Capital has shown an increasing trend from 1.78% in 2019 to 19.25% in 2022, indicating the company's improved ability to generate returns for both debt and equity holders.
Return on Equity (ROE) has been volatile, with a significant decrease from 2019 to 2023. The negative ROE in 2023 indicates that the company incurred a loss relative to shareholders' equity.
Overall, Chemours Co's profitability ratios suggest a varying level of operational efficiency and effectiveness in utilizing assets and capital to generate returns for investors. Further analysis and consideration of the company's financial performance and industry conditions are recommended for a comprehensive understanding of its profitability dynamics.