Church & Dwight Company Inc (CHD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.11% | 41.86% | 43.61% | 45.23% | 45.53% |
| Operating profit margin | 18.02% | 11.12% | 20.79% | 21.03% | 19.28% |
| Pretax margin | 16.49% | 9.73% | 19.88% | 19.89% | 17.75% |
| Net profit margin | 12.88% | 7.70% | 15.94% | 16.05% | 14.13% |
Church & Dwight Co., Inc.'s profitability ratios have shown fluctuations over the past five years. The gross profit margin has ranged from 41.86% to 45.53%, with the most recent figure at 44.11%. This indicates a moderate level of efficiency in generating profits after accounting for the cost of goods sold.
The operating profit margin has also varied significantly, with a low of 11.12% in 2022 and a high of 21.03% in 2020. In the latest year, the operating profit margin improved to 18.02%, indicating the company's ability to control operating expenses more effectively.
Similarly, the pretax margin and net profit margin have displayed fluctuations. The pretax margin ranged from 9.73% to 19.89%, with the latest figure at 16.49%. The net profit margin ranged from 7.70% to 16.05%, with the most recent figure at 12.88%. These margins reflect the company's ability to generate profits before and after accounting for taxes and other expenses.
Overall, Church & Dwight Co., Inc.'s profitability ratios suggest a generally stable performance, with some variability in margins over the years. Investors and stakeholders may monitor these ratios to assess the company's efficiency in generating profits and managing costs.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.34% | 7.16% | 13.49% | 13.89% | 12.62% |
| Return on assets (ROA) | 8.82% | 4.96% | 10.35% | 10.60% | 9.25% |
| Return on total capital | 17.80% | 10.07% | 22.42% | 21.41% | 18.92% |
| Return on equity (ROE) | 19.60% | 11.86% | 25.59% | 26.02% | 23.09% |
Church & Dwight Co., Inc. has shown generally positive trends in profitability ratios over the past five years. The Operating Return on Assets (Operating ROA) has fluctuated, reaching its peak in 2021 at 13.49% before declining slightly in 2022 and bouncing back to 12.34% in 2023. This metric indicates the company's ability to generate profit from its assets used in operations.
Return on Assets (ROA) reflects the company's overall profitability in relation to its total assets. Over the period, Church & Dwight Co., Inc. has exhibited a similar pattern to Operating ROA, with the highest value in 2021 at 10.35% and a subsequent decrease in 2022 and a slight rebound to 8.82% in 2023.
The Return on Total Capital has shown an increasing trend, hitting the peak in 2021 at 18.78% and then further improving to 17.03% in 2023. This ratio demonstrates how efficiently the company is utilizing its capital to generate returns for both debt and equity providers.
Lastly, the Return on Equity (ROE) has also demonstrated an upward trajectory, with the highest value of 25.59% in 2021 and another impressive increase to 19.60% in 2023. ROE indicates the profitability generated for the equity shareholders in the company.
Overall, the profitability ratios of Church & Dwight Co., Inc. point towards effective management of assets, capital, and equity to generate increasing returns for the stakeholders over the analyzed period.