Greif Bros Corporation (GEF)
Profitability ratios
Return on sales
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.65% | 21.96% | 20.24% | 19.67% | 20.26% |
| Operating profit margin | 8.53% | 11.60% | 9.78% | 10.53% | 6.75% |
| Pretax margin | 5.87% | 9.48% | 8.28% | 8.61% | 4.12% |
| Net profit margin | 4.81% | 6.88% | 5.93% | 7.03% | 2.41% |
The profitability ratios of Greif Bros Corporation show fluctuations over the past five years.
1. Gross Profit Margin:
- The gross profit margin has been relatively stable, ranging from 19.65% to 21.96%.
- This ratio indicates the percentage of revenue that remains after accounting for the cost of goods sold.
2. Operating Profit Margin:
- The operating profit margin shows variability, with the lowest at 8.53% in 2024 and the highest at 11.60% in 2023.
- This ratio reflects the company's ability to generate profit from its core operations.
3. Pretax Margin:
- The pretax margin has fluctuated over the years, with a decline from 8.61% in 2021 to 5.87% in 2024.
- This ratio indicates the percentage of profit before taxes relative to revenue.
4. Net Profit Margin:
- The net profit margin also displays variations, with a peak at 7.03% in 2021 and a low point at 4.81% in 2024.
- This ratio shows the company's overall profitability after all expenses have been deducted.
Overall, while the company has maintained relatively stable gross profit margins, other profitability ratios have shown more fluctuation. It is essential for Greif Bros Corporation to monitor and manage its operating expenses to ensure sustainable profitability in the long run.
Return on investment
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.99% | 10.16% | 11.38% | 10.06% | 5.53% |
| Return on assets (ROA) | 3.94% | 6.03% | 6.90% | 6.72% | 1.97% |
| Return on total capital | 21.83% | 30.49% | 33.32% | 37.73% | 26.19% |
| Return on equity (ROE) | 12.59% | 18.44% | 21.39% | 25.80% | 9.44% |
Greif Bros Corporation's profitability ratios show a mixed performance over the five-year period from October 31, 2020, to October 31, 2024.
- Operating return on assets (Operating ROA) has steadily increased from 5.53% in 2020 to 11.38% in 2022, indicating the company's ability to generate operating income relative to its total assets. However, there was a slight decrease to 10.16% in 2023 and a further drop to 6.99% in 2024, suggesting a potential decline in operational efficiency.
- Return on assets (ROA) also saw an upward trend from 1.97% in 2020 to 6.90% in 2022 before declining to 3.94% in 2024. This ratio reflects the overall profitability of the company concerning its total assets.
- Return on total capital peaked at 37.73% in 2021 before gradually decreasing to 21.83% in 2024. This metric indicates the efficiency of the company in generating returns from both debt and equity capital invested in the business.
- Return on equity (ROE) showed a significant improvement from 9.44% in 2020 to 25.80% in 2021, suggesting the company's ability to generate returns for its shareholders. However, ROE then declined in the following years, reaching 12.59% in 2024, which may indicate a slowdown in profitability growth relative to the shareholders' equity.
Overall, while Greif Bros Corporation demonstrated improved profitability metrics in the earlier years of the period, there were signs of a slight decline in profitability in the later years, which could be an area of concern warranting further analysis.