Corning Incorporated (GLW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.60% | 31.23% | 31.76% | 35.95% | 31.24% |
| Operating profit margin | 8.65% | 7.07% | 10.13% | 15.00% | 4.50% |
| Pretax margin | 5.54% | 5.95% | 12.17% | 17.02% | 5.51% |
| Net profit margin | 3.86% | 4.62% | 9.27% | 13.54% | 4.53% |
Corning Incorporated's profitability ratios exhibit varying trends over the past five years. The gross profit margin increased from 31.24% in December 2020 to 35.95% in December 2021, showing improved efficiency in generating revenue after deducting the cost of goods sold. However, it decreased slightly to 31.23% in December 2023 before recovering to 32.60% in December 2024.
The operating profit margin experienced a significant improvement, rising from 4.50% in December 2020 to 15.00% in December 2021. This suggests better control over operating expenses and increased efficiency in managing core business operations. Subsequently, the margin declined to 7.07% in December 2023 but showed a slight improvement to 8.65% in December 2024.
The pretax margin surged from 5.51% in December 2020 to 17.02% in December 2021, indicating higher profitability before accounting for taxes. However, the margin dropped to 5.54% in December 2024, reflecting potential challenges ahead.
The net profit margin rose from 4.53% in December 2020 to 13.54% in December 2021, reflecting improved bottom-line profitability after considering all expenses. Nevertheless, it declined to 3.86% in December 2024, suggesting potential pressures on net income generation.
Overall, Corning Incorporated demonstrated a mixed performance in profitability ratios over the analyzed period, with improvements in certain margins offset by declines in others. Further analysis of the company's financial and operational aspects may provide additional insights into its performance and strategies for sustaining or enhancing profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.09% | 3.12% | 4.87% | 7.00% | 1.65% |
| Return on assets (ROA) | 1.82% | 2.04% | 4.46% | 6.32% | 1.66% |
| Return on total capital | 6.64% | 4.80% | 7.94% | 10.24% | 2.25% |
| Return on equity (ROE) | 4.74% | 5.03% | 10.96% | 15.45% | 3.86% |
Based on the provided data, we can analyze Corning Incorporated's profitability ratios as follows:
1. Operating Return on Assets (Operating ROA):
- Corning's Operating ROA has shown variability over the years, starting at 1.65% in 2020, increasing to 7.00% in 2021, and then decreasing to 4.87% in 2022. It further declined to 3.12% in 2023 before improving slightly to 4.09% in 2024. This ratio measures the company's operating efficiency in generating profits from its assets, indicating that Corning became more efficient in 2021 but faced challenges in maintaining the same level of efficiency in subsequent years.
2. Return on Assets (ROA):
- The ROA of Corning followed a similar trend to the Operating ROA, starting at 1.66% in 2020, peaking at 6.32% in 2021, and then declining to 1.82% in 2024. This ratio provides insights into the overall profitability of the company relative to its total assets, highlighting fluctuations in Corning's ability to generate profits from its asset base over the years.
3. Return on Total Capital:
- Corning's Return on Total Capital also displayed variability, ranging from 2.25% in 2020 to 10.24% in 2021, and then stabilizing around 6-7% in the following years. This ratio evaluates how effectively the company utilizes all its capital (debt and equity) to generate profits, indicating improvements in capital utilization in 2021 but relative stability in subsequent years.
4. Return on Equity (ROE):
- The ROE of Corning declined steadily from 3.86% in 2020 to 4.74% in 2024, with a peak of 15.45% in 2021. ROE measures the return on shareholders' equity, demonstrating the profitability of shareholders' investments in the company. The decreasing trend in ROE implies a decline in shareholder value created by Corning over the years.
In conclusion, while Corning's profitability ratios have shown fluctuations and some level of volatility over the years, the company experienced peaks and troughs in operating efficiency, overall profitability, capital utilization, and return on equity during the period under consideration. These fluctuations may indicate changing market conditions or management strategies impacting Corning's financial performance.