FMC Corporation (FMC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 43.86% | 41.75% | 42.93% | 44.14% | 45.20% |
| Operating profit margin | 13.31% | 20.53% | 20.55% | 19.34% | 17.82% |
| Pretax margin | 4.84% | 15.82% | 16.53% | 15.17% | 12.77% |
| Net profit margin | 31.66% | 13.21% | 14.69% | 11.91% | 10.36% |
FMC Corp.'s profitability ratios exhibit fluctuating trends over the past five years. The gross profit margin has shown a slight decrease from 45.20% in 2019 to 40.81% in 2023, indicating a decline in the company's ability to generate profit after accounting for the cost of goods sold.
The operating profit margin reflects the efficiency of FMC Corp.'s core operations in generating profits before interest and taxes. It peaked at 22.85% in 2021 but then decreased to 17.11% in 2023, suggesting some challenges in managing operating expenses effectively.
The pretax margin, which shows the percentage of profit before taxes relative to total revenue, has shown fluctuation. It dropped from 17.72% in 2021 to 6.69% in 2023, indicating a significant decline in profitability before accounting for taxes.
On the other hand, the net profit margin, which indicates the percentage of profit after all expenses have been deducted from revenue, showed a significant increase from 10.32% in 2019 to 29.39% in 2023. This substantial improvement suggests that FMC Corp. effectively managed its expenses, taxes, and other costs to generate higher profits relative to revenue.
In summary, FMC Corp. has experienced varied profitability performance over the past five years, with fluctuations in gross profit margin, operating profit margin, and pretax margin. However, the increase in net profit margin from 2019 to 2023 indicates an overall positive trend in managing expenses and improving profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.66% | 10.24% | 9.69% | 8.80% | 8.32% |
| Return on assets (ROA) | 11.08% | 6.59% | 6.93% | 5.42% | 4.84% |
| Return on total capital | 5.91% | 16.91% | 16.45% | 14.51% | 13.47% |
| Return on equity (ROE) | 29.96% | 21.80% | 23.67% | 18.65% | 18.85% |
FMC Corp.'s profitability ratios show fluctuations over the past five years. The operating return on assets (Operating ROA) has been relatively stable, ranging from 6.44% to 11.08% during this period, indicating the company's ability to generate operating income from its assets.
Return on assets (ROA) demonstrates an increasing trend, from 4.82% in 2019 to 11.06% in 2023, suggesting improved efficiency in asset utilization and profitability.
Return on total capital reflects a declining trend from 17.14% in 2019 to 9.18% in 2023, indicating a decrease in the return generated from total invested capital.
Return on equity (ROE) has shown volatility but generally an increasing trend, reaching 29.90% in 2023. This indicates that the company has been generating substantial profits relative to shareholder equity.
Overall, while FMC Corp. has exhibited varied performance in profitability ratios over the years, there is evidence of improvement in some key metrics, signaling enhanced operational efficiency and profitability.