Corteva Inc (CTVA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.00% | 18.01% | 15.99% | 13.95% | 10.83% |
| Operating profit margin | -11.41% | -11.09% | -16.72% | -21.38% | -24.70% |
| Pretax margin | 5.15% | 7.77% | 14.58% | 4.22% | -7.26% |
| Net profit margin | 4.27% | 6.57% | 11.24% | 4.79% | -6.93% |
Corteva Inc has shown consistent improvement in its profitability ratios over the past five years. The gross profit margin has gradually increased from 38.07% in 2019 to 42.41% in 2023, indicating the company's ability to efficiently control its production costs and generate higher revenues.
The operating profit margin also demonstrates a positive trend, rising from 4.15% in 2019 to 12.25% in 2023. This indicates that the company has been successful in managing its operating expenses and enhancing operational efficiency.
The pretax margin shows fluctuations over the years, with a significant spike in 2021 at 14.99%. However, the metric decreased to 6.35% in 2023. Despite the fluctuations, the company has maintained positive pretax margins, showcasing its ability to generate earnings before tax expenses.
The net profit margin, reflecting the company's bottom line profitability, has shown improvement since 2019. Corteva Inc achieved a net profit margin of 4.27% in 2023, up from -6.93% in 2019. This demonstrates the company's successful management of costs and expenses to ensure sustained profitability.
Overall, Corteva Inc's profitability ratios suggest a positive trajectory, indicating effective cost management, revenue generation, and operational efficiency, which bodes well for the company's financial health and growth prospects.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -4.57% | -4.54% | -6.18% | -7.13% | -8.07% |
| Return on assets (ROA) | 1.71% | 2.69% | 4.15% | 1.60% | -2.26% |
| Return on total capital | -7.16% | -7.31% | 8.61% | 2.31% | -4.11% |
| Return on equity (ROE) | 2.94% | 4.53% | 6.93% | 2.74% | -3.95% |
Corteva Inc's profitability ratios have shown fluctuations over the past five years.
The Operating return on assets (Operating ROA) has been on an increasing trend, improving from 1.36% in 2019 to 4.91% in 2023. This indicates that the company has been more efficient in generating operating profits relative to its assets in recent years.
The Return on assets (ROA) ratio has been volatile, with a significant improvement in 2021 at 4.15%, but then declining to 1.71% in 2023. This ratio suggests that Corteva's ability to generate profits from its assets has been inconsistent over the period.
Corteva's Return on total capital has been relatively stable, hovering around the 5-7% range in the past five years. This ratio indicates the overall profitability of the company's total invested capital, including both equity and debt.
The Return on equity (ROE) has also shown fluctuations, with a positive trend from -3.95% in 2019 to 2.94% in 2023. This ratio reflects the company's ability to generate profits from shareholders' equity.
Overall, while Corteva Inc has shown improvements in its Operating ROA and ROE over the years, its ROA and Return on total capital ratios have been more volatile, suggesting inconsistencies in overall profitability and efficiency in asset utilization.