Church & Dwight Company Inc (CHD)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 45.69% | 44.11% | 41.86% | 43.61% | 45.23% |
| Operating profit margin | 13.22% | 18.02% | 11.12% | 20.79% | 21.03% |
| Pretax margin | 12.38% | 16.49% | 9.73% | 19.88% | 19.89% |
| Net profit margin | 9.58% | 12.88% | 7.70% | 15.94% | 16.05% |
Church & Dwight Company Inc's profitability ratios have shown some fluctuation over the years. The gross profit margin, which indicates the percentage of revenue retained after accounting for the cost of goods sold, has decreased from 45.23% in 2020 to 41.86% in 2022, before recovering to 45.69% in 2024. This suggests some variability in managing production costs and pricing strategies.
The operating profit margin, which measures operating income as a percentage of revenue, declined from 21.03% in 2020 to 11.12% in 2022, before improving to 13.22% in 2024. This indicates challenges in operating efficiency, which may have impacted profitability during the period.
The pretax margin, reflecting pretax income as a percentage of revenue, also followed a similar trend, decreasing from 19.89% in 2020 to 9.73% in 2022, before climbing back to 12.38% in 2024. This indicates fluctuations in pre-tax profitability over the years.
Lastly, the net profit margin, representing net income as a percentage of revenue, dropped from 16.05% in 2020 to 7.70% in 2022, before recovering slightly to 9.58% in 2024. This suggests that the company faced challenges in translating revenue into bottom-line profits, which may be attributed to various factors such as operating costs, taxes, and other expenses.
Overall, it is important for Church & Dwight Company Inc to closely monitor and manage its profitability ratios to ensure sustainable and consistent financial performance in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.09% | 12.34% | 7.16% | 13.49% | 13.89% |
| Return on assets (ROA) | 6.59% | 8.82% | 4.96% | 10.35% | 10.60% |
| Return on total capital | 12.97% | 17.80% | 10.07% | 22.42% | 21.41% |
| Return on equity (ROE) | 13.42% | 19.60% | 11.86% | 25.59% | 26.02% |
Church & Dwight Company Inc's profitability ratios reflect some fluctuations over the past five years. The Operating Return on Assets (Operating ROA) ranged from 7.16% in December 2022 to a peak of 13.89% in December 2020. This ratio indicates how efficiently the company is generating profits from its assets before interest and taxes.
The Return on Assets (ROA) also varied, showing a decline from 10.60% in December 2020 to 6.59% in December 2024. ROA measures how effectively the company is utilizing its assets to generate earnings.
The Return on Total Capital indicates the return on all capital providers' investments, including shareholders and debt holders. Church & Dwight Company Inc's Return on Total Capital ranged from 10.07% in December 2022 to 22.42% in December 2021, demonstrating fluctuations in the company's ability to generate returns for all invested capital.
Finally, the Return on Equity (ROE) declined from 26.02% in December 2020 to 13.42% in December 2024. ROE measures the return generated on shareholders' equity investments and shows how well the company is utilizing equity to generate profits.
Overall, while there have been fluctuations in Church & Dwight Company Inc's profitability ratios over the past five years, the company has generally maintained positive returns on assets, total capital, and equity, indicating a reasonable level of profitability and efficiency in its operations.