FMC Corporation (FMC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 40.92% | 41.94% | 40.57% | 40.23% | 39.99% | 40.22% | 42.26% | 42.82% | 42.93% | 42.98% | 43.01% | 43.64% | 44.20% | 44.94% | 44.89% | 45.00% | 45.20% | 40.76% | 40.75% | 39.94% |
| Operating profit margin | 12.42% | 18.78% | 19.41% | 19.73% | 19.67% | 18.27% | 19.01% | 20.77% | 20.55% | 19.03% | 19.04% | 18.97% | 19.44% | 18.51% | 18.01% | 17.81% | 17.82% | 17.90% | 17.11% | 14.50% |
| Pretax margin | 4.52% | 11.83% | 13.41% | 14.97% | 15.15% | 14.36% | 15.08% | 16.65% | 16.51% | 15.53% | 15.05% | 14.79% | 15.14% | 13.16% | 12.70% | 12.38% | 12.77% | 11.67% | 11.80% | 10.33% |
| Net profit margin | 29.53% | 10.01% | 11.58% | 12.49% | 12.66% | 11.68% | 12.81% | 14.69% | 14.69% | 12.52% | 11.77% | 11.55% | 11.88% | 10.64% | 10.35% | 10.02% | 10.36% | 10.35% | 10.19% | 9.36% |
The profitability ratios of FMC Corp. have shown some fluctuations over the past eight quarters. The gross profit margin has been relatively stable around the 40-42% range, indicating that the company is effectively managing its cost of goods sold.
The operating profit margin, which measures the company's ability to generate profits from its core operations, has shown a gradual decline from around 23% in Q1 2022 to around 17% in Q4 2023. This could be a cause for concern as it suggests that the company's operating expenses may be increasing relative to its revenues.
The pretax margin, which reflects the company's profitability before accounting for taxes, has also shown variability over the period, ranging from around 6-18%. The significant increase in Q3 2023 could be due to one-time gains or operating efficiencies.
The net profit margin, which represents the company's bottom line profitability after all expenses have been deducted, has also displayed fluctuations, with the highest margin in Q4 2023 at 29.39% and the lowest in Q3 2022 at 9.99%. This volatility in net profit margins could be attributed to changes in operating efficiency, non-recurring expenses, or tax implications.
In conclusion, while FMC Corp. has maintained a relatively stable gross profit margin, there are some concerns regarding the downward trend in operating profit margins. It is important for the company to focus on controlling operating expenses and maintaining a healthy bottom line to ensure sustainable profitability in the long run.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.66% | 8.51% | 8.72% | 9.76% | 10.24% | 9.49% | 9.30% | 9.89% | 9.69% | 8.74% | 8.13% | 8.35% | 8.86% | 8.88% | 8.32% | 8.16% | 8.32% | 9.05% | 8.47% | 7.01% |
| Return on assets (ROA) | 11.08% | 4.54% | 5.20% | 6.18% | 6.59% | 6.07% | 6.27% | 6.99% | 6.93% | 5.75% | 5.03% | 5.08% | 5.41% | 5.10% | 4.78% | 4.59% | 4.84% | 5.23% | 5.04% | 4.53% |
| Return on total capital | 7.47% | 14.76% | 16.34% | 19.73% | 18.72% | 17.26% | 17.58% | 18.62% | 17.67% | 16.06% | 15.50% | 15.43% | 15.31% | 14.52% | 14.21% | 13.39% | 14.77% | 15.61% | 16.96% | 14.22% |
| Return on equity (ROE) | 29.96% | 15.10% | 18.53% | 20.89% | 21.80% | 20.49% | 22.26% | 24.93% | 23.67% | 19.74% | 17.68% | 17.61% | 18.62% | 16.94% | 16.93% | 17.49% | 18.85% | 19.36% | 17.93% | 16.32% |
The profitability ratios of FMC Corp. show fluctuations over the past eight quarters.
1. Operating return on assets (Operating ROA) has ranged from 6.44% to 11.08% over this period. It indicates the company's ability to generate operating profits from its assets, with a downward trend visible from Q1 2023 to Q4 2023.
2. Return on assets (ROA) has varied between 4.52% and 11.06%. This ratio reflects FMC Corp.'s overall ability to generate profit from its assets, showing fluctuations throughout the quarters.
3. Return on total capital has fluctuated between 9.18% and 18.60%. This ratio assesses the company's profitability in relation to both debt and equity financing, with a peak in Q4 2022 followed by a gradual decrease.
4. Return on equity (ROE) has ranged from 15.06% to 29.90%. This ratio measures the return earned by the company on shareholders' equity, showing fluctuations over the quarters with a peak in Q4 2023.
Overall, FMC Corp.'s profitability ratios indicate variability in its ability to generate profits relative to its assets, capital, and equity over the analyzed period. Further analysis would be required to understand the factors driving these fluctuations and their implications for the company's financial performance.