Dow Inc (DOW)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,116,000 | 589,000 | 4,582,000 | 6,311,000 | 1,225,000 |
| Revenue | US$ in thousands | 42,964,000 | 44,622,000 | 56,902,000 | 54,968,000 | 38,542,000 |
| Net profit margin | 2.60% | 1.32% | 8.05% | 11.48% | 3.18% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $1,116,000K ÷ $42,964,000K
= 2.60%
The net profit margin of Dow Inc has fluctuated over the years. In December 31, 2020, the net profit margin was 3.18%, indicating that for every dollar of revenue generated, the company retained approximately 3.18 cents as net profit.
There was a significant improvement in the net profit margin by December 31, 2021, reaching 11.48%. This suggests that the company was able to increase its profitability and efficiency in generating profits relative to its revenue.
By December 31, 2022, the net profit margin remained strong at 8.05%, although it had decreased from the previous year. This indicates that the company continued to generate healthy profits but at a slightly lower rate than in 2021.
However, there was a notable decline in the net profit margin to 1.32% by December 31, 2023, indicating a decrease in profitability relative to revenue during that period.
By December 31, 2024, the net profit margin had improved to 2.60%, showing some recovery from the previous year's decline but still lower than the levels seen in 2021 and 2022.
Overall, the fluctuations in Dow Inc's net profit margin over the years suggest variability in the company's profitability and efficiency in managing costs and generating profits from its operations. It would be important to investigate the reasons behind these fluctuations to understand the company's financial performance better.
Peer comparison
Dec 31, 2024