Corteva Inc (CTVA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 43.64% | 100.00% | 40.21% | 41.11% | 40.16% |
| Operating profit margin | 12.40% | 5.46% | 10.84% | 8.41% | 7.42% |
| Pretax margin | 7.54% | 6.35% | 8.17% | 14.99% | 4.75% |
| Net profit margin | 5.36% | 4.27% | 6.57% | 11.24% | 4.79% |
Corteva Inc's profitability ratios demonstrate a relatively stable performance over the years. The gross profit margin has shown a slight increase from 40.16% in 2020 to 43.64% in 2024, indicating an improvement in the company's ability to generate profits from its core operations.
The operating profit margin has witnessed fluctuations, with a significant jump from 7.42% in 2020 to 12.40% in 2024. This suggests that Corteva has managed its operating expenses effectively while increasing operational efficiency.
The pretax margin peaked in 2021 at 14.99%, reflecting strong profitability before taxes. However, it decreased to 7.54% in 2024, potentially due to various factors impacting the company's earnings before taxes.
The net profit margin also showcased a fluctuating trend, ranging from 4.27% in 2023 to 11.24% in 2021. The margin stood at 5.36% in 2024, indicating Corteva's ability to translate revenue into net income.
Overall, Corteva's profitability ratios, though showing some fluctuations, reflect a solid performance, with improvements in gross profit margin and operating profit margin highlighting the company's operational efficiency and potential for generating profits.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.13% | 2.19% | 4.44% | 3.11% | 2.47% |
| Return on assets (ROA) | 2.22% | 1.71% | 2.69% | 4.15% | 1.60% |
| Return on total capital | 6.34% | 3.76% | 5.95% | 9.36% | 4.88% |
| Return on equity (ROE) | 3.81% | 2.94% | 4.53% | 6.93% | 2.74% |
Corteva Inc's profitability ratios show mixed performance over the period from December 31, 2020, to December 31, 2024.
1. Operating return on assets (Operating ROA) improved from 2.47% in 2020 to 5.13% in 2024, indicating that the company increased its operating earnings generated from its assets over the period.
2. Return on assets (ROA) experienced fluctuations, reaching its peak at 4.15% in 2021 but dropping to 1.71% by 2023 and then recovering slightly to 2.22% in 2024. This suggests that the company's overall profitability relative to its total assets has been volatile.
3. Return on total capital saw an increase from 4.88% in 2020 to 9.36% in 2021, indicating improved efficiency in generating returns from both equity and debt capital. However, the ratio declined to 6.34% by 2024, reflecting a lower return on the total invested capital.
4. Return on equity (ROE) followed a similar pattern as ROA, with an increase from 2.74% in 2020 to 6.93% in 2021 and subsequent decreases in the following years. The ROE was 3.81% in 2024, indicating lower profitability in relation to shareholders' equity compared to previous years.
In conclusion, although Corteva Inc showed improvements in operating return on assets and total capital returns, the fluctuating trends in ROA and declining trends in ROE suggest a need for the company to focus on enhancing overall profitability and efficiency in utilizing its assets and equity capital.