Dow Inc (DOW)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 5.14% | 4.10% | 5.07% | 6.90% | 9.86% | 12.80% | 15.04% | 16.09% | 15.76% | 15.94% | 14.75% | 12.28% | 13.48% | 13.44% | 13.19% | 14.39% | 14.65% |
| Operating profit margin | 1.07% | -1.60% | -0.14% | 2.05% | 5.15% | 8.46% | 11.28% | 12.34% | 11.99% | 12.96% | 7.66% | 2.84% | 2.25% | -5.47% | -3.01% | -1.46% | -1.54% |
| Pretax margin | 1.31% | 3.88% | 4.80% | 7.14% | 10.60% | 12.28% | 14.20% | 15.11% | 14.65% | 15.15% | 12.05% | 7.26% | 5.24% | -5.24% | -4.06% | -2.86% | -2.04% |
| Net profit margin | 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% | -3.13% |
Based on the provided data, we can observe a downward trend in Dow Inc's profitability ratios over the period from March 31, 2022 to December 31, 2023.
The gross profit margin, which represents the percentage of revenue left after deducting the cost of goods sold, declined significantly from 20.26% in March 31, 2022 to 10.94% in December 31, 2023. This indicates a reduction in the company's ability to generate profits from its core operations.
Furthermore, the operating profit margin, which reflects the company's efficiency in managing its operating expenses, also experienced a downward trend, declining from 15.06% in March 31, 2022 to 4.71% in December 31, 2023.
The pretax margin, representing the company's profitability before taxes, also exhibited a decreasing pattern, dropping from 15.21% in March 31, 2022 to 1.47% in December 31, 2023. This indicates a decline in the company's ability to generate profits after accounting for operating expenses and interest expenses but before considering taxes.
Similarly, the net profit margin, which reveals the company's net income as a percentage of revenue, displayed a decreasing trend, falling from 11.81% in March 31, 2022 to 1.32% in December 31, 2023.
In summary, the trend in Dow Inc's profitability ratios suggests a decline in its ability to generate profits from its operations and manage its expenses effectively over the analyzed period. This trend may raise concerns regarding the company's financial performance and management effectiveness.
Return on investment
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.83% | -1.26% | -0.12% | 1.85% | 4.83% | 8.43% | 10.91% | 11.37% | 10.46% | 10.77% | 5.73% | 1.91% | 1.41% | -3.47% | -1.99% | -1.01% | -1.10% |
| Return on assets (ROA) | 1.02% | 2.24% | 2.99% | 4.92% | 7.56% | 9.58% | 10.70% | 10.88% | 10.02% | 9.44% | 6.67% | 3.30% | 2.02% | -3.87% | -3.31% | -2.74% | -2.22% |
| Return on total capital | 7.81% | 13.27% | 15.74% | 13.35% | 19.63% | 27.05% | 29.37% | 28.08% | 25.13% | 25.84% | 18.84% | 11.55% | 8.89% | -3.28% | -1.94% | -0.63% | 0.48% |
| Return on equity (ROE) | 3.17% | 6.68% | 8.72% | 14.47% | 22.12% | 31.49% | 35.04% | 36.49% | 34.74% | 35.46% | 26.46% | 14.25% | 10.00% | -18.79% | -15.66% | -12.89% | -9.94% |
Dow Inc's profitability ratios have exhibited fluctuations over the past eight quarters. The operating return on assets (Operating ROA) has shown a declining trend, decreasing from 13.87% in March 2022 to 3.62% in December 2023. This indicates that the company's operating income generated from its assets has decreased over this period.
Similarly, the return on assets (ROA) has also shown a decreasing trend, declining from 10.88% in March 2022 to 1.02% in December 2023. This suggests that the overall profitability of the company in relation to its total assets has decreased substantially.
The return on total capital and return on equity (ROE) have also experienced a downward trend, implying that the returns generated from total capital and shareholders' equity have declined over time.
These declining profitability ratios may raise concerns about Dow Inc's ability to generate earnings from its assets, total capital, and shareholders' equity. It would be important to assess the underlying reasons for these declining trends and how the company plans to address them in the future.