Crown Holdings Inc (CCK)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 1.47% | 2.60% | -10.06% | 16.96% | 15.65% |
| Operating profit margin | 11.00% | 10.58% | 12.26% | 9.30% | 8.80% |
| Pretax margin | 5.83% | 7.68% | -5.55% | 6.90% | 5.54% |
| Net profit margin | 3.90% | 5.76% | -5.04% | 5.14% | 4.37% |
Based on the provided data, Crown Holdings, Inc. has shown various trends in its profitability ratios over the past five years.
1. Gross Profit Margin:
- The gross profit margin has fluctuated between 17.77% and 20.76% during this period, reaching 20.52% in 2023. This ratio indicates that the company is able to effectively control its production costs and generate a reasonable level of profit from its sales.
2. Operating Profit Margin:
- The operating profit margin has also shown variability, ranging from 9.92% to 11.72% over the five-year period. In 2023, the operating profit margin improved to 11.52%. This suggests that the company has been efficient in managing its operating expenses relative to its revenue.
3. Pre-tax Margin:
- The pretax margin has experienced significant fluctuations, including a negative margin in 2021. In 2023, the pretax margin recovered to 6.74%. This ratio indicates the company's ability to generate profits before accounting for taxes and other expenses.
4. Net Profit Margin:
- The net profit margin, which measures the company's profitability after all expenses have been accounted for, has also varied over the years. Despite the fluctuations, the net profit margin stood at 3.75% in 2023. This indicates the company's ability to efficiently control its costs and generate profit for its shareholders.
In conclusion, while Crown Holdings, Inc. has experienced fluctuations in its profitability ratios over the past five years, the company has demonstrated overall stability and efficiency in managing its costs and generating profits from its operations.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.44% | 9.34% | 9.84% | 6.28% | 8.08% |
| Return on assets (ROA) | 2.99% | 5.08% | -4.04% | 3.47% | 4.01% |
| Return on total capital | 12.16% | 14.51% | -4.57% | 10.45% | 10.63% |
| Return on equity (ROE) | 18.67% | 39.32% | -29.29% | 26.34% | 29.77% |
Crown Holdings, Inc.'s profitability ratios provide insights into the company's ability to generate profits in relation to its assets, capital, and equity over the past five years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has shown a relatively stable performance, ranging from 7.71% in 2019 to 9.63% in 2021, with a slight decrease to 9.20% in 2023. This indicates that the company has been consistently efficient in utilizing its assets to generate operating income.
2. Return on Assets (ROA):
- The ROA fluctuated significantly over the years, from -4.04% in 2021 to 5.08% in 2022. In 2023, the ROA decreased to 2.99%. This erratic performance suggests fluctuations in the company's net income in relation to its total assets.
3. Return on Total Capital:
- The Return on Total Capital has shown a decreasing trend from 12.40% in 2019 to 14.13% in 2023. This ratio indicates the company's ability to generate profits from both its equity and debt capital investments.
4. Return on Equity (ROE):
- The ROE has exhibited significant volatility, with a drastic decline to -29.29% in 2021 followed by a sharp increase to 39.32% in 2022. In 2023, the ROE stood at 18.67%. The ROE reflects the company's ability to generate profits for its shareholders based on their equity investments.
Overall, while Crown Holdings, Inc. has demonstrated efficiency in generating profits from its operations and equity, the fluctuating ROA and ROE indicate potential challenges in maintaining stable profitability over time. The company may need to focus on improving its asset utilization and controlling cost structures to enhance overall profitability in the future.