Greif Bros Corporation (GEF)
Net profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 359,200 | 376,700 | 390,700 | 108,800 | 171,000 |
| Revenue | US$ in thousands | 5,270,000 | 6,333,800 | 5,654,500 | 4,538,400 | 4,583,900 |
| Net profit margin | 6.82% | 5.95% | 6.91% | 2.40% | 3.73% |
October 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $359,200K ÷ $5,270,000K
= 6.82%
Net profit margin is a key financial ratio that indicates the percentage of each dollar of revenue that translates into net income. It is a measure of a company's profitability and efficiency in managing its expenses relative to its revenue. A higher net profit margin signifies better cost management and a more efficient operation.
Based on the provided data, Greif Inc's net profit margin has fluctuated over the past five years. In 2019, the net profit margin was 3.72%, which increased to 7.03% in 2021 before dropping to 2.41% in 2020. The margins for 2022 and 2023 were 5.93% and 6.88%, respectively.
These fluctuations indicate that Greif Inc has experienced some variability in its profitability over the years. The increase in 2021 compared to 2020 suggests improved cost management and/or increased revenue, leading to a higher margin. However, the subsequent decrease in 2022 and 2023 indicates that the company may have faced challenges in maintaining this improved profitability.
It is important to further investigate the reasons behind these fluctuations to understand the underlying factors contributing to the changes in net profit margin. Factors such as changes in cost structures, pricing strategies, operational efficiencies, and economic conditions can impact a company's net profit margin.
In conclusion, while Greif Inc's net profit margin has shown variability over the past five years, the company should focus on maintaining and improving its profitability through effective cost management and sustainable revenue growth strategies. Additionally, closer examination of the company's expenses and revenue sources can provide valuable insights into its overall financial health and performance.