Element Solutions Inc (ESI)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 244,200 | 118,100 | 187,200 | 203,300 | 75,700 |
| Revenue | US$ in thousands | 2,456,900 | 2,333,200 | 2,549,400 | 2,399,800 | 1,853,700 |
| Net profit margin | 9.94% | 5.06% | 7.34% | 8.47% | 4.08% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $244,200K ÷ $2,456,900K
= 9.94%
The net profit margin of Element Solutions Inc. has exhibited notable fluctuations over the period from December 31, 2020, to December 31, 2024. Specifically, the company recorded a net profit margin of 4.08% at the end of 2020, which increased significantly to 8.47% in 2021. This represents more than a doubling of profitability relative to the prior year, indicating a potentially effective improvement in cost management or revenue growth during that period.
However, in 2022, the net profit margin experienced a decline to 7.34%, reflecting some erosion of profit efficiency despite remaining relatively high compared to 2020. This decrease could suggest increased expenses, competitive pressures, or other operational challenges affecting profitability.
The year 2023 saw a further reduction in the net profit margin to 5.06%, approaching the levels observed in 2020, which may point to challenges in maintaining improved margins from previous years or a period of increased costs or lower revenue growth.
Conversely, by 2024, the net profit margin rebounded sharply to 9.94%, surpassing all prior annual figures. This significant increase implies a marked improvement in profitability, potentially driven by operational efficiencies, favorable market conditions, cost control measures, or a combination of these factors.
Overall, the trend indicates volatility in Element Solutions Inc.'s net profit margin over the analyzed period, with a substantial turnaround in 2024 that could suggest effective strategic adjustments or market developments favoring higher profitability.
Peer comparison
Dec 31, 2024