Dow Inc (DOW)

Net profit margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Net income (ttm) US$ in thousands 1,116,000 1,064,000 1,152,000 1,198,000 589,000 1,307,000 1,744,000 2,920,000 4,582,000 5,705,000 6,649,000 6,889,000 6,311,000 5,829,000 4,121,000 1,995,000 1,243,000 -2,321,000 -1,963,000 -1,663,000
Revenue (ttm) US$ in thousands 42,964,000 43,180,000 43,031,000 43,536,000 44,622,000 45,860,000 49,245,000 53,489,000 56,902,000 59,407,000 60,129,000 58,350,000 54,968,000 51,310,000 46,185,000 40,654,000 38,542,000 38,040,000 39,092,000 41,752,000
Net profit margin 2.60% 2.46% 2.68% 2.75% 1.32% 2.85% 3.54% 5.46% 8.05% 9.60% 11.06% 11.81% 11.48% 11.36% 8.92% 4.91% 3.23% -6.10% -5.02% -3.98%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $1,116,000K ÷ $42,964,000K
= 2.60%

Net profit margin is a key financial ratio that indicates the percentage of each dollar of revenue that translates into net income. Looking at the trend of Dow Inc's net profit margin over the past few years, we can observe a fluctuating pattern. The net profit margin started in negative territory from March 2020 to September 2020, indicating that the company was operating with net losses during that period.

From December 2020 onwards, Dow Inc's net profit margin turned positive, showing an upward trend until June 2022. During this period, the company experienced a significant improvement in profitability, reaching a peak net profit margin of 11.81% in March 2022. However, from June 2022 to December 2024, the net profit margin gradually decreased, albeit still remaining positive.

Overall, Dow Inc's net profit margin fluctuated over the analyzed period, showing signs of both improvement and decline. It is important for investors and stakeholders to monitor this trend closely as it reflects the company's ability to generate profits relative to its revenue and manage its expenses effectively.