Crown Holdings Inc (CCK)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 4.52% | 1.47% | 2.60% | -10.06% | 16.96% |
| Operating profit margin | 11.78% | 11.00% | 10.58% | 12.26% | 9.30% |
| Pretax margin | 5.04% | 5.83% | 7.68% | -5.55% | 6.90% |
| Net profit margin | 3.52% | 3.90% | 5.76% | -5.04% | 5.14% |
The Gross Profit Margin for Crown Holdings Inc showed a significant decrease from 16.96% in 2020 to -10.06% in 2021, indicating a substantial decline in profitability from the company's core business operations before considering operating expenses. However, there was a recovery in subsequent years, with the margin improving to 4.52% in 2024.
The Operating Profit Margin, which represents the company's ability to generate profits from its core operations after accounting for operating expenses, displayed a positive trend over the period. Starting at 9.30% in 2020, the margin increased steadily to reach 11.78% in 2024, reflecting improved operational efficiency and cost management by Crown Holdings Inc.
The Pretax Margin, indicating the company's profitability before accounting for taxes, experienced fluctuations during the years under review. The margin was positive in 2020 and 2022 but turned negative in 2021. However, improved performance in subsequent years led to a recovery, with the margin stabilizing around 5% in 2023 and 2024.
The Net Profit Margin, which measures the company's profitability after all expenses, including taxes, showed a similar pattern to the Pretax Margin. Starting at 5.14% in 2020, the margin turned negative in 2021, signaling a loss in net income. Despite recovering in later years, the margin remained relatively low, reaching 3.52% in 2024.
Overall, Crown Holdings Inc demonstrated fluctuations in profitability ratios over the period, with improvements in Operating Profit Margin suggesting enhanced operational efficiency, while challenges in Gross and Net Profit Margins point to potential issues in managing costs and generating bottom-line profits.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.25% | 8.44% | 9.34% | 9.84% | 6.28% |
| Return on assets (ROA) | 3.06% | 2.99% | 5.08% | -4.04% | 3.47% |
| Return on total capital | 12.01% | 12.16% | 14.51% | -4.57% | 10.45% |
| Return on equity (ROE) | 15.38% | 18.67% | 39.32% | -29.29% | 26.34% |
Crown Holdings Inc's profitability ratios show fluctuations over the years.
- Operating return on assets (Operating ROA) improved from 6.28% in 2020 to 10.25% in 2024, indicating the company's ability to generate operating profits from its assets.
- Return on assets (ROA) was negative at -4.04% in 2021 but recovered to 3.06% in 2024. This suggests variability in the company's ability to generate profits relative to its total assets.
- Return on total capital was negative at -4.57% in 2021 but improved to 12.01% in 2024, indicating a recovery in the company's ability to generate returns on its total invested capital.
- Return on equity (ROE) was negative at -29.29% in 2021 but improved to 15.38% in 2024. ROE signifies how effectively the company is utilizing equity investments to generate profits for shareholders.
Overall, the profitability metrics of Crown Holdings Inc have shown mixed performance over the years, with improvements in some ratios indicating enhanced profitability and efficiency in utilizing assets and capital.