Eastman Chemical Company (EMN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.41% | 22.38% | 20.20% | 23.86% | 23.31% |
| Operating profit margin | 13.90% | 11.90% | 11.85% | 17.95% | 11.42% |
| Pretax margin | 11.49% | 11.80% | 9.23% | 10.33% | 6.26% |
| Net profit margin | 9.65% | 9.71% | 7.50% | 8.18% | 5.64% |
Eastman Chemical Company's profitability ratios show fluctuations over the past five years. The company's gross profit margin has ranged between 20.20% to 24.41%, with the highest margin recorded in 2024 at 24.41%. This indicates the company's ability to generate profit from its core operations after accounting for the cost of goods sold.
In terms of operating profit margin, Eastman Chemical Company experienced significant variability, with the lowest margin of 11.85% in 2022 and the highest margin of 17.95% in 2021. This ratio reflects the company's efficiency in managing its operating expenses in relation to its revenue.
The pretax margin also fluctuated over the five-year period, ranging from 6.26% to 11.80%. The increasing trend from 2020 to 2024 suggests that the company has been able to improve its profitability before accounting for taxes.
Lastly, the net profit margin increased from 5.64% in 2020 to 9.65% in 2024, indicating that after accounting for all expenses, Eastman Chemical Company's bottom line profitability has improved over the years.
Overall, Eastman Chemical Company has shown variability in its profitability margins, with improvements in net profit margin over the years suggesting effective cost management and revenue generation strategies.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.57% | 7.49% | 8.55% | 12.11% | 6.02% |
| Return on assets (ROA) | 5.95% | 6.11% | 5.41% | 5.52% | 2.97% |
| Return on total capital | 22.39% | 20.08% | 24.34% | 32.96% | 16.07% |
| Return on equity (ROE) | 15.66% | 16.38% | 15.39% | 15.02% | 7.94% |
Eastman Chemical Company's profitability ratios exhibit a positive trend over the years, reflecting improving financial performance. The Operating Return on Assets (Operating ROA) increased from 6.02% in 2020 to 8.57% in 2024, indicating that the company generated more operating income per dollar of assets employed.
Similarly, Return on Assets (ROA) rose from 2.97% in 2020 to 5.95% in 2024, showcasing an enhanced ability to generate profits from its total assets. The Return on Total Capital also followed an upward trajectory, increasing from 16.07% in 2020 to 22.39% in 2024, indicating efficient use of both debt and equity capital to generate returns.
Furthermore, the Return on Equity (ROE) demonstrated steady growth from 7.94% in 2020 to 15.66% in 2024, highlighting the company's ability to deliver returns to its shareholders.
Overall, Eastman Chemical Company's profitability ratios reflect a positive trend, suggestive of effective management of assets and capital resources, which has led to enhanced profitability and shareholder value over the years.