Dow Inc (DOW)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 589,000 | 4,582,000 | 6,311,000 | 1,225,000 | -1,359,000 |
| Revenue | US$ in thousands | 44,622,000 | 56,902,000 | 54,968,000 | 38,542,000 | 42,951,000 |
| Net profit margin | 1.32% | 8.05% | 11.48% | 3.18% | -3.16% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $589,000K ÷ $44,622,000K
= 1.32%
The net profit margin of Dow Inc has fluctuated over the past five years. In 2023, the net profit margin decreased to 1.32%, down from 8.05% in 2022 and 11.48% in 2021. This decline may indicate a decrease in profitability and efficient cost management. The net profit margin was substantially lower at 3.18% in 2020 and even negative at -3.16% in 2019, suggesting financial challenges during those years. The decreasing trend from 2021 to 2023 raises concerns about the company's ability to generate profits from its revenues. It is essential for Dow Inc to closely evaluate its cost structure and operational efficiency to improve its profitability in the future.
Peer comparison
Dec 31, 2023