FMC Corporation (FMC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.83% | 40.81% | 40.10% | 43.04% | 44.20% |
| Operating profit margin | 15.35% | 15.14% | 18.26% | 19.07% | 18.32% |
| Pretax margin | 5.95% | 6.69% | 16.96% | 17.72% | 15.72% |
| Net profit margin | 8.03% | 29.39% | 12.69% | 14.66% | 11.90% |
FMC Corporation's profitability ratios indicate varying levels of performance over the past five years.
1. Gross Profit Margin: The gross profit margin, which shows the percentage of revenue remaining after covering the cost of goods sold, has fluctuated between 38.83% in 2024 to 44.20% in 2020. The declining trend suggests that the company may be experiencing challenges in maintaining profitability at the production level.
2. Operating Profit Margin: FMC's operating profit margin, representing the proportion of revenue that translates into profit after accounting for operating expenses, ranged from 15.14% in 2023 to 19.07% in 2021. The fluctuations in this ratio indicate some volatility in the company's ability to manage its operational costs efficiently.
3. Pretax Margin: The pretax margin, which signifies the portion of revenue retained as profit before taxes, shows a significant drop from 17.72% in 2021 to 5.95% in 2024. This sharp decline raises concerns about FMC's ability to generate consistent profitability before accounting for tax obligations.
4. Net Profit Margin: FMC's net profit margin, reflecting the percentage of revenue that remains as net income for shareholders after all expenses, has varied widely from 8.03% in 2024 to 29.39% in 2023. The spike in 2023 indicates a substantial increase in profitability, while the drop in 2024 suggests challenges in maintaining earnings growth.
In conclusion, FMC Corporation's profitability ratios exhibit fluctuations over the five-year period, with some years showing strong performance and others indicating potential challenges in maintaining profitability levels. Further analysis of the underlying factors driving these fluctuations would be necessary to assess the company's overall financial health and sustainability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.59% | 5.70% | 9.48% | 9.09% | 8.35% |
| Return on assets (ROA) | 2.93% | 11.06% | 6.59% | 6.99% | 5.42% |
| Return on total capital | 14.52% | 12.13% | 33.28% | 33.58% | 29.44% |
| Return on equity (ROE) | 7.60% | 29.90% | 21.66% | 24.23% | 18.51% |
Based on the data provided for FMC Corporation's profitability ratios:
1. Operating Return on Assets (Operating ROA):
- FMC Corporation's Operating ROA has shown a consistent improvement over the years, increasing from 8.35% in 2020 to 9.48% in 2022 before experiencing a slight decline to 5.70% in 2023 and 5.59% in 2024. This indicates that the company's operating income generated from its assets has been relatively stable, with a notable peak in 2022.
2. Return on Assets (ROA):
- FMC Corporation's ROA has shown some fluctuations over the years, with a significant increase from 5.42% in 2020 to 11.06% in 2023, but a notable decrease to 2.93% in 2024. This fluctuation suggests that the company's overall profitability in relation to its total assets has varied, achieving a peak in 2023.
3. Return on Total Capital:
- FMC Corporation's Return on Total Capital demonstrates a strong performance, consistently above 10% over the years. The ratio increased from 29.44% in 2020 to 33.28% in 2022 before declining to 12.13% in 2023 and improving to 14.52% in 2024. This indicates that the company has been effectively generating returns from both debt and equity financing.
4. Return on Equity (ROE):
- FMC Corporation's ROE has shown a mixed performance, increasing from 18.51% in 2020 to 29.90% in 2023 before dropping to 7.60% in 2024. This suggests that the company's ability to generate profits from shareholders' equity has been strong but experienced a significant decline in 2024.
Overall, FMC Corporation's profitability ratios reveal a generally positive trend in terms of generating returns on assets, total capital, and equity, with some fluctuations that may warrant further investigation into the company's financial performance and strategic decisions.