Corning Incorporated (GLW)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.23% | 31.76% | 35.95% | 31.24% | 35.08% |
| Operating profit margin | 7.07% | 10.13% | 15.00% | 4.50% | 11.35% |
| Pretax margin | 5.95% | 12.17% | 17.02% | 5.51% | 10.57% |
| Net profit margin | 4.62% | 9.27% | 13.54% | 4.53% | 8.35% |
Corning, Inc.'s profitability ratios have shown fluctuations over the past five years. The gross profit margin decreased from 35.08% in 2019 to 31.23% in 2023, indicating a decline in the company's ability to generate profit from sales after deducting the cost of goods sold.
The operating profit margin also declined from 11.35% in 2019 to 7.07% in 2023, reflecting a decrease in the efficiency of the company's operations in generating operating profit.
Similarly, the pretax margin declined from 10.57% in 2019 to 6.48% in 2023, implying that the company's profitability before taxes has decreased over the years.
The net profit margin showed fluctuations, with an increase from 7.49% in 2019 to 9.27% in 2022, but then a decline to 4.62% in 2023, indicating volatility in the company's bottom line profitability.
Overall, the trend in profitability ratios for Corning, Inc. suggests a mixed performance over the years, with some years showing improvements while others show declines. It is important for the company to analyze the underlying reasons for these fluctuations and take necessary measures to improve profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.12% | 4.87% | 7.00% | 1.65% | 4.52% |
| Return on assets (ROA) | 2.04% | 4.46% | 6.32% | 1.66% | 3.32% |
| Return on total capital | 4.80% | 7.94% | 10.24% | 2.25% | 10.11% |
| Return on equity (ROE) | 5.03% | 10.96% | 15.45% | 3.86% | 7.44% |
Corning, Inc.'s profitability ratios show varying levels of performance over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated significantly, with a high of 7.00% in 2021 and a low of 1.65% in 2020. The ratio indicates that the company's operating income generated from its assets has been inconsistent.
2. Return on assets (ROA) has also been volatile, reaching its peak at 4.46% in 2022 and hitting a low of 1.35% in 2020. It measures the overall profitability of the company in generating earnings from its total assets.
3. Return on total capital shows a similar trend, with a high of 11.08% in 2021 and a low of 2.28% in 2020. This ratio evaluates the efficiency of the company in generating profits from both shareholders' equity and long-term debt.
4. Return on equity (ROE) has been relatively stable compared to the other ratios but still fluctuated. It ranged from 3.12% in 2020 to 10.96% in 2022, indicating how efficiently the company is utilizing shareholders' equity to generate profits.
Overall, the profitability ratios suggest that Corning, Inc. has experienced some challenges in maintaining consistent profitability over the past five years. It would be essential for the company to focus on improving its operational efficiency and optimizing its capital structure to enhance profitability and create value for its shareholders.