Dow Inc (DOW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 5.80% | 5.14% | 9.86% | 15.76% | 13.48% |
| Operating profit margin | 0.02% | 1.07% | 5.16% | 11.93% | 7.13% |
| Pretax margin | 3.53% | 1.31% | 10.60% | 14.65% | 5.19% |
| Net profit margin | 2.60% | 1.32% | 8.05% | 11.48% | 3.18% |
Dow Inc's profitability ratios, as depicted by the gross profit margin, operating profit margin, pretax margin, and net profit margin, have fluctuated over the years.
Starting with the gross profit margin, it increased from 13.48% in December 2020 to 15.76% in December 2021, signifying an improvement in the company's efficiency in generating profit after accounting for the cost of goods sold. However, there was a notable decline in the gross profit margin to 9.86% in December 2022, followed by a further reduction to 5.14% in December 2023, before a slight recovery to 5.80% in December 2024.
Moving on to the operating profit margin, there was steady growth from 7.13% in December 2020 to 11.93% in December 2021. However, there was a significant drop to 5.16% in December 2022, plummeting further to 1.07% in December 2023, and almost reaching breakeven at 0.02% in December 2024.
The pretax margin showed a similar trend of increase and decrease, with a notable surge from 5.19% in December 2020 to 14.65% in December 2021, followed by declines to 10.60% in December 2022, 1.31% in December 2023, and a slight recovery to 3.53% in December 2024.
Finally, the net profit margin mirrored the patterns seen in the other profitability ratios, with an increase from 3.18% in December 2020 to 11.48% in December 2021, then falling to 8.05% in December 2022, 1.32% in December 2023, and a slight rebound to 2.60% in December 2024.
Overall, the fluctuations in these profitability ratios suggest a mix of factors impacting Dow Inc's financial performance, potentially including changes in revenue, cost structures, operational efficiency, and external economic conditions during the analyzed period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.01% | 0.83% | 4.84% | 10.41% | 4.47% |
| Return on assets (ROA) | 1.95% | 1.02% | 7.56% | 10.02% | 1.99% |
| Return on total capital | 14.17% | 7.81% | 19.63% | 25.13% | 8.83% |
| Return on equity (ROE) | 6.43% | 3.17% | 22.12% | 34.74% | 9.85% |
Dow Inc's profitability ratios depict fluctuating performance over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA increased from 4.47% in 2020 to 10.41% in 2021, indicating improved efficiency in generating operating profits from its assets. However, it dropped to 0.83% in 2023 and further to 0.01% in 2024, suggesting challenges in maintaining profitability from its operational activities.
2. Return on Assets (ROA):
- The ROA was at 1.99% in 2020, surged to 10.02% in 2021, but then declined to 1.02% in 2023. It recovered slightly to 1.95% in 2024. This shows the company's ability to generate profits relative to its total assets, signaling periodic fluctuations in asset utilization efficiency.
3. Return on Total Capital:
- The Return on Total Capital soared from 8.83% in 2020 to 25.13% in 2021, indicating enhanced returns relative to the total capital employed. However, it decreased to 7.81% in 2023 and then climbed back to 14.17% in 2024. This indicates changes in the company's ability to generate profits from its total capital over the years.
4. Return on Equity (ROE):
- The ROE surged significantly from 9.85% in 2020 to 34.74% in 2021, showcasing impressive returns to equity holders. However, it dropped to 3.17% in 2023 and then slightly increased to 6.43% in 2024. This indicates fluctuations in the company's profitability relative to shareholders' equity.
In summary, while Dow Inc experienced notable spikes in profitability ratios in certain years, there were also instances of decline, reflecting changing performance trends and potentially challenges in sustaining consistent profitability levels.