Chemours Co (CC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.91% | 21.67% | 23.79% | 21.77% | 21.47% |
| Operating profit margin | 7.90% | -1.53% | 13.44% | 14.00% | 10.24% |
| Pretax margin | 2.20% | -5.28% | 10.91% | 10.65% | 3.60% |
| Net profit margin | 1.49% | -3.95% | 8.51% | 9.58% | 4.41% |
Chemours Co's profitability ratios show some fluctuations over the five-year period.
1. Gross Profit Margin: The gross profit margin has shown an increasing trend from 21.47% in 2020 to 23.79% in 2022, indicating the company's ability to efficiently control its production costs and generate profits from its core operations. However, there was a slight decline to 19.91% in 2024, which may raise concerns about the company's pricing strategy or cost management.
2. Operating Profit Margin: The operating profit margin improved significantly from 10.24% in 2020 to 14.00% in 2021, but then decreased to 7.90% in 2024. This may indicate challenges in managing operating expenses or optimizing operational efficiency.
3. Pretax Margin: The pretax margin exhibited a similar pattern, increasing from 3.60% in 2020 to 10.91% in 2022 before dropping to 2.20% in 2024. The negative value in 2023 suggests that the company incurred losses before accounting for taxes, which could be due to extraordinary expenses or operational challenges.
4. Net Profit Margin: The net profit margin reflects the actual profitability of the company after all expenses, including taxes. Chemours Co's net profit margin improved from 4.41% in 2020 to 9.58% in 2021, but then decreased to 1.49% in 2024. The negative margin in 2023 suggests that the company experienced a net loss during that year.
Overall, while there were periods of strong profitability, particularly in 2021 and 2022, the declining trend in profitability margins in 2024 and the negative margins in 2023 raise concerns about the company's ability to sustain consistent profitability in the future. Further analysis of the underlying reasons for these fluctuations would be necessary to provide a more detailed assessment of Chemours Co's profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.08% | -1.12% | 11.95% | 11.76% | 7.19% |
| Return on assets (ROA) | 1.14% | -2.88% | 7.57% | 8.05% | 3.09% |
| Return on total capital | 64.74% | -14.93% | 82.48% | 82.15% | 54.98% |
| Return on equity (ROE) | 14.24% | -32.29% | 52.21% | 56.24% | 26.94% |
Chemours Co's profitability ratios have shown fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has increased from 7.19% in December 2020 to 11.95% in December 2022, indicating an improvement in the company's operating efficiency. However, there was a decline to -1.12% in December 2023, which may raise concerns about the company's operational performance. The ratio recovered to 6.08% by December 2024.
2. Return on assets (ROA) followed a similar trend, with an increase from 3.09% in December 2020 to 7.57% in December 2022 before dropping to -2.88% in December 2023. The ratio improved to 1.14% by December 2024, but the negative figure in 2023 suggests issues with the company's asset utilization.
3. Return on total capital peaked at 82.48% in December 2022, up from 54.98% in December 2020. However, there was a significant decline to -14.93% in December 2023 before recovering to 64.74% by December 2024. This ratio reflects the company's ability to generate returns from its total invested capital.
4. Return on equity (ROE) showed a similar pattern of improvement and decline. It increased from 26.94% in December 2020 to 56.24% in December 2021, signaling strong returns for shareholders. However, the ratio dropped to -32.29% in December 2023, indicating a negative impact on shareholder equity. By December 2024, the ROE had recovered to 14.24%.
Overall, while Chemours Co has demonstrated periods of strong profitability, there have been fluctuations in its ratios, particularly in 2023, which may indicate challenges in asset management and equity performance that the company needs to address to ensure sustained profitability.