Eastman Chemical Company (EMN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.38% | 20.20% | 23.86% | 23.31% | 24.09% |
| Operating profit margin | 6.24% | 5.70% | 8.27% | 3.47% | 6.17% |
| Pretax margin | 11.78% | 9.21% | 10.23% | 6.13% | 9.69% |
| Net profit margin | 9.71% | 7.50% | 8.18% | 5.64% | 8.19% |
Eastman Chemical Co's profitability ratios have shown fluctuating trends over the past five years. The gross profit margin has exhibited variations, ranging from a high of 24.09% in 2019 to a low of 20.20% in 2022, with a slight improvement to 22.38% in 2023.
Similarly, the operating profit margin has fluctuated, with a gradual decline from 14.12% in 2019 to 10.84% in 2022, before rebounding to 11.89% in 2023. The pretax margin also shows variability, with a significant increase from 6.26% in 2020 to 11.80% in 2023, after experiencing a dip in 2021.
The net profit margin, a key indicator of overall profitability, has displayed fluctuations over the period analyzed, ranging from a low of 5.64% in 2020 to a high of 9.71% in 2023. These variations suggest that Eastman Chemical Co has experienced challenges in maintaining consistent profitability levels, possibly due to factors such as changes in operating expenses, pricing strategies, or revenue streams.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.93% | 4.11% | 5.58% | 1.83% | 3.57% |
| Return on assets (ROA) | 6.11% | 5.41% | 5.52% | 2.97% | 4.74% |
| Return on total capital | 11.30% | 10.71% | 10.65% | 4.63% | 7.81% |
| Return on equity (ROE) | 16.38% | 15.39% | 15.02% | 7.94% | 12.74% |
Eastman Chemical Co's profitability ratios show a mixed performance over the past five years.
The Operating return on assets (Operating ROA) has fluctuated within a relatively narrow range, decreasing slightly from 9.35% in 2021 to 7.48% in 2023. This indicates the company's ability to generate operating profits from its assets has declined in the most recent year.
Return on assets (ROA) has shown more variability, with a significant increase from 2.97% in 2020 to 6.11% in 2023. This improvement suggests that Eastman Chemical Co has been more effective in generating profits from its total assets over the past year.
Return on total capital has also displayed fluctuations, with a peak of 13.36% in 2021 and a decrease to 10.63% in 2023. This ratio reflects the company's efficiency in earning a return on both debt and equity capital invested in the business.
Return on equity (ROE) has shown a steady upward trend, increasing gradually from 7.94% in 2020 to 16.38% in 2023. This indicates that the company has been able to generate higher returns for its shareholders over the past few years.
Overall, while some profitability ratios have shown improvements, others have experienced fluctuations or slight declines. Eastman Chemical Co may need to focus on improving its operating efficiency to ensure sustainable profitability growth in the future.