Clearwater Paper Corporation (CLW)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.41% | 5.41% | 3.77% | 9.35% | 2.11% |
| Operating profit margin | 8.50% | 5.48% | 0.68% | 8.46% | 2.58% |
| Pretax margin | 6.92% | 3.51% | -2.02% | 5.26% | -0.45% |
| Net profit margin | 5.17% | 2.21% | -1.59% | 4.13% | -0.32% |
Clearwater Paper Corp's profitability ratios have shown improvement over the years, with increasing margins indicating enhanced profitability. The gross profit margin has steadily increased from 9.34% in 2019 to 15.88% in 2023, suggesting the company has been able to better control its costs and generate more revenue from its core operations.
The operating profit margin has also shown consistent improvement, rising from 2.80% in 2019 to 8.70% in 2023. This indicates that the company has been able to manage its operating expenses more efficiently and improve its overall operating performance.
The pretax margin, though fluctuating, has generally trended upwards, reaching 6.92% in 2023. This indicates that the company has been able to increase its profitability before accounting for taxes, which is a positive sign for investors.
The net profit margin, which reflects the company's overall profitability after accounting for all expenses and taxes, has shown significant improvement over the years, increasing from -0.32% in 2019 to 5.17% in 2023. This suggests that Clearwater Paper Corp has been able to reduce its costs, increase its revenues, and generate higher profits for its shareholders.
Overall, Clearwater Paper Corp's trend of improving profitability ratios signifies a positive outlook for the company's financial performance and potential for growth in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.59% | 6.69% | 0.71% | 8.78% | 2.42% |
| Return on assets (ROA) | 6.44% | 2.70% | -1.66% | 4.28% | -0.30% |
| Return on total capital | 15.56% | 9.43% | -0.05% | 11.52% | 3.18% |
| Return on equity (ROE) | 16.10% | 8.04% | -5.49% | 14.80% | -1.30% |
Clearwater Paper Corp's profitability ratios have shown a positive trend over the past five years. The Operating return on assets (Operating ROA) has improved consistently from 2.63% in 2019 to 10.84% in 2023, indicating the company's effectiveness in generating operating income from its assets.
Similarly, Return on assets (ROA) has also shown a positive trajectory, moving from a negative -0.30% in 2019 to 6.44% in 2023. This indicates that Clearwater Paper Corp has been able to generate a higher level of net income relative to its total assets, reflecting improved efficiency and profitability.
Return on total capital has also demonstrated significant improvement, increasing from 3.69% in 2019 to 16.01% in 2023. This metric shows how well the company is generating returns from its total invested capital, including both equity and debt.
Return on equity (ROE), representing the return to the company's shareholders, has experienced fluctuations but has generally trended upwards. The ROE improved from -1.30% in 2019 to 16.11% in 2023, indicating a better return to shareholders' equity.
Overall, Clearwater Paper Corp's profitability ratios show a positive trend, with the company's ability to generate returns from its assets, capital, and equity improving over the years. This indicates improved operational efficiency and financial performance, which is a positive sign for investors and stakeholders.