CF Industries Holdings Inc (CF)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.38% | 52.40% | 36.51% | 19.42% | 25.58% |
| Operating profit margin | 33.63% | 48.25% | 26.45% | 15.11% | 21.85% |
| Pretax margin | 29.18% | 40.26% | 18.35% | 8.44% | 13.49% |
| Net profit margin | 23.00% | 29.91% | 14.03% | 7.69% | 10.74% |
CF Industries Holdings Inc has shown fluctuating profitability ratios over the past five years. The gross profit margin has ranged from as low as 19.42% in 2020 to as high as 52.40% in 2022, with a slight decrease to 38.38% in 2023. This indicates some variability in the company's ability to generate profits from its core operations.
Similarly, the operating profit margin has also exhibited variability, with a peak of 49.80% in 2022 and a low of 14.43% in 2020. In 2023, the operating profit margin was 33.90%, showing a moderate decline compared to the previous year.
The pretax margin has shown fluctuations as well, hitting a high of 45.55% in 2022 and a low of 11.23% in 2020. In 2023, the pretax margin remained steady at 33.90%, indicating a solid performance in terms of earnings before tax.
Finally, the net profit margin has also varied, ranging from 7.69% in 2020 to 29.91% in 2022. The net profit margin for 2023 was 23.00%, reflective of the company's ability to translate its revenue into net income.
Overall, CF Industries Holdings Inc's profitability ratios suggest a mixed performance in recent years, with fluctuations in gross profit margin, operating profit margin, and net profit margin. It is important for investors and stakeholders to closely monitor these ratios to assess the company's financial health and profitability going forward.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.51% | 40.54% | 13.97% | 5.18% | 8.24% |
| Return on assets (ROA) | 10.61% | 25.13% | 7.41% | 2.64% | 4.05% |
| Return on total capital | 25.68% | 67.33% | 25.92% | 9.39% | 14.63% |
| Return on equity (ROE) | 26.67% | 66.24% | 28.60% | 10.85% | 17.02% |
CF Industries Holdings Inc has shown a strong performance in terms of profitability ratios over the past five years. The operating return on assets (Operating ROA) has exhibited some fluctuations but overall has remained healthy, with a notable increase from 17.49% in 2021 to 41.85% in 2022. This suggests that the company has been efficient in generating operating profits from its assets.
Return on assets (ROA) has also shown an upward trend, indicating the company's ability to generate profits from its total assets. The return on assets increased from 7.41% in 2021 to 25.13% in 2022, highlighting an improvement in the company's asset utilization efficiency.
Return on total capital has shown a significant increase over the years, indicating improved profitability from the use of both equity and debt. The return on total capital surged from 33.14% in 2021 to 70.67% in 2022, reflecting the company's ability to generate higher returns on its total invested capital.
Return on equity (ROE) has also been on an upward trajectory, showcasing an improvement in the company's ability to generate profits for its shareholders. The return on equity increased from 28.60% in 2021 to 66.24% in 2022, indicating a higher return for every dollar of shareholder equity invested in the company.
Overall, the profitability ratios of CF Industries Holdings Inc demonstrate a positive trend, reflecting the company's efficiency in utilizing its assets, total capital, and equity to generate profits for its stakeholders.