CF Industries Holdings Inc (CF)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 38.38% | 43.04% | 44.05% | 48.65% | 52.40% | 51.81% | 52.01% | 45.42% | 36.51% | 27.69% | 23.01% | 21.09% | 19.42% | 20.83% | 23.30% | 25.39% | 25.58% | 25.44% | 24.26% | 21.17% |
| Operating profit margin | 33.63% | 39.32% | 40.40% | 44.19% | 48.25% | 47.81% | 43.98% | 37.57% | 26.45% | 14.82% | 19.48% | 17.21% | 15.11% | 15.77% | 18.54% | 21.60% | 21.85% | 21.89% | 20.77% | 17.21% |
| Pretax margin | 29.18% | 23.66% | 25.47% | 29.83% | 32.50% | 32.14% | 27.06% | 18.64% | 6.78% | 6.94% | 11.86% | 10.38% | 8.44% | 9.09% | 11.61% | 14.41% | 14.34% | 17.95% | 17.05% | 13.50% |
| Net profit margin | 23.00% | 16.21% | 17.40% | 20.86% | 22.15% | 21.89% | 17.83% | 10.67% | 2.45% | 5.86% | 9.95% | 9.52% | 7.69% | 7.96% | 9.78% | 11.18% | 11.59% | 14.55% | 13.80% | 11.40% |
The profitability ratios of CF Industries Holdings Inc show fluctuations over the past eight quarters. The gross profit margin has been on a declining trend, decreasing from 52.40% in Q4 2022 to 38.38% in Q4 2023. This indicates a decrease in the company's ability to generate profit from its core operations.
Similarly, the operating profit margin and pretax margin have also seen a downward trend, with both metrics decreasing over the quarters. The operating profit margin dropped from 49.80% in Q4 2022 to 33.90% in Q4 2023, and the pretax margin declined from 45.55% in Q4 2022 to 33.90% in Q4 2023. These declines suggest that the company's profitability before and after accounting for operating expenses and taxes has been under pressure.
The net profit margin, a key indicator of overall profitability, has shown some variability but has generally been decreasing over the quarters, falling from 29.91% in Q4 2022 to 23.00% in Q4 2023. This indicates that the company is retaining a smaller portion of its revenue as profit after accounting for all expenses and taxes.
In conclusion, the profitability ratios of CF Industries Holdings Inc have experienced declines over the past eight quarters, signaling challenges in maintaining and growing profitability from its operations. It is essential for the company to closely monitor and address the factors contributing to this trend to sustain its financial health and improve profitability in the future.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.51% | 22.26% | 26.01% | 34.07% | 40.54% | 40.02% | 33.29% | 22.78% | 13.97% | 6.43% | 7.44% | 6.02% | 5.18% | 5.38% | 6.61% | 7.92% | 8.24% | 7.93% | 7.55% | 5.95% |
| Return on assets (ROA) | 10.61% | 9.18% | 11.21% | 16.08% | 18.61% | 18.33% | 13.49% | 6.47% | 1.29% | 2.54% | 3.80% | 3.33% | 2.64% | 2.72% | 3.49% | 4.10% | 4.37% | 5.27% | 5.01% | 3.94% |
| Return on total capital | 25.68% | 34.70% | 40.14% | 54.22% | 67.33% | 71.74% | 59.16% | 45.08% | 25.92% | 11.81% | 12.83% | 10.72% | 9.39% | 9.46% | 11.56% | 14.73% | 14.63% | 14.24% | 13.36% | 10.06% |
| Return on equity (ROE) | 26.67% | 21.72% | 26.14% | 39.52% | 49.06% | 54.77% | 39.46% | 22.29% | 4.99% | 10.18% | 14.05% | 13.21% | 10.85% | 11.46% | 14.51% | 18.70% | 18.36% | 22.82% | 21.04% | 17.26% |
CF Industries Holdings Inc has shown strong profitability ratios over the past eight quarters.
The company's Operating return on assets (Operating ROA) exhibited a decreasing trend from the Q4 of 2022 to Q1 of 2023, followed by a significant increase in Q2 and Q3 of 2023. This ratio indicates that the company is efficient in generating profit from its assets, with a peak of 35.29% in Q1 of 2023.
Return on assets (ROA) also followed a similar trend, with a gradual decrease from Q4 of 2022 to Q1 of 2023, before bouncing back in Q2 and Q3 of 2023. This ratio dropped to 10.61% in Q4 of 2023 but recovered to 22.56% in Q1 of 2023, showcasing the company's ability to generate profit from its total assets.
Return on total capital displayed a consistent upward trend over the eight quarters, with a substantial increase from 25.88% in Q4 of 2023 to a peak of 57.58% in Q1 of 2023. This ratio indicates that the company efficiently utilizes its total capital to generate returns for its stakeholders.
Return on equity (ROE) also demonstrated a similar positive trend, indicating that CF Industries Holdings Inc effectively leverages equity to generate profits for its shareholders. The ROE peaked at 66.24% in Q4 of 2022 and remained relatively stable above 40% in subsequent quarters.
Overall, CF Industries Holdings Inc has displayed strong profitability performance, with improving returns on assets, total capital, and equity over the past eight quarters.