CF Industries Holdings Inc (CF)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.64% | 38.38% | 52.40% | 36.51% | 19.42% |
| Operating profit margin | 29.41% | 33.63% | 48.25% | 26.45% | 15.11% |
| Pretax margin | 29.68% | 33.90% | 45.55% | 23.60% | 11.23% |
| Net profit margin | 20.52% | 23.00% | 29.91% | 19.27% | 10.48% |
CF Industries Holdings Inc has shown significant improvement in its profitability margins over the years.
- Gross profit margin has increased steadily from 19.42% in December 2020 to 34.64% in December 2024. This indicates the company's ability to efficiently manage its production costs and generate higher profits from its core operations.
- Operating profit margin has also shown a positive trend, rising from 15.11% in December 2020 to 29.41% in December 2024. This suggests that CF Industries has been successful in controlling its operating expenses while increasing revenue.
- Pretax margin has demonstrated consistent growth, starting at 11.23% in December 2020 and reaching 29.68% in December 2024. This shows the company's effectiveness in managing its tax obligations and generating profit before tax.
- Net profit margin has improved over the years, increasing from 10.48% in December 2020 to 20.52% in December 2024. This reflects CF Industries' ability to translate its revenues into higher net income, which is a key indicator of overall profitability.
Overall, CF Industries Holdings Inc has shown praiseworthy improvements in its profitability margins, showcasing its operational efficiency and ability to generate sustainable earnings growth.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.97% | 15.51% | 40.54% | 13.97% | 5.18% |
| Return on assets (ROA) | 9.05% | 10.61% | 25.13% | 10.18% | 3.59% |
| Return on total capital | 38.13% | 41.95% | 107.68% | 68.28% | 21.97% |
| Return on equity (ROE) | 24.43% | 26.67% | 66.24% | 39.30% | 14.78% |
CF Industries Holdings Inc has shown a positive trend in profitability ratios over the five-year period analyzed. The operating return on assets (Operating ROA) increased from 5.18% in December 31, 2020, to 40.54% in December 31, 2022, signaling improved operational efficiency and profitability. Although there was a slight decrease to 15.51% in December 31, 2023, it remained at a healthy level of 12.97% by December 31, 2024.
Similarly, the Return on assets (ROA) exhibited growth from 3.59% in December 31, 2020, to 25.13% in December 31, 2022, before stabilizing around 9-10% in the subsequent years. This indicates the company's ability to generate earnings from its assets.
In terms of Return on total capital, CF Industries Holdings Inc experienced a remarkable increase from 21.97% in December 31, 2020, to 107.68% in December 31, 2022, showcasing efficient capital allocation. The ratio then declined to 38.13% by December 31, 2024, which is still a relatively strong performance.
Lastly, the Return on equity (ROE) trended positively, rising from 14.78% in December 31, 2020, to 66.24% in December 31, 2022, before stabilizing around 24-39% in the following years. This highlights the company's ability to generate profit for its shareholders.
Overall, CF Industries Holdings Inc has demonstrated consistent profitability and efficiency in utilizing its assets and capital over the analyzed period, which is a positive indicator for investors and stakeholders.