International Flavors & Fragrances Inc (IFF)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 33.12% | 32.26% | 31.43% | 31.48% | 32.07% | 31.76% | 31.75% | 32.43% | 33.37% | 33.76% | 34.44% | 33.23% | 32.04% | 33.02% | 33.39% | 36.67% | 41.03% | 40.69% | 40.86% | 41.37% |
| Operating profit margin | 8.47% | -14.80% | -15.82% | -17.47% | -18.38% | 4.57% | -13.52% | -12.55% | -10.66% | -9.96% | 8.11% | 7.43% | 5.02% | 5.18% | 4.51% | 6.03% | 11.14% | 11.43% | 12.11% | 13.44% |
| Pretax margin | 2.42% | -19.70% | -20.20% | -21.30% | -21.94% | 1.02% | -16.66% | -15.49% | -13.06% | -11.93% | 6.17% | 5.58% | 3.04% | 3.23% | 2.16% | 3.77% | 8.68% | 9.00% | 10.00% | 11.11% |
| Net profit margin | 2.12% | -20.33% | -20.82% | -22.01% | -22.35% | 0.40% | -18.33% | -17.11% | -14.81% | -13.90% | 5.03% | 4.48% | 2.32% | 2.50% | 1.72% | 3.16% | 7.13% | 7.42% | 8.24% | 9.09% |
International Flavors & Fragrances Inc has experienced fluctuations in its profitability ratios over the years. The Gross Profit Margin, which measures the percentage of revenue that exceeds the cost of goods sold, has generally trended downwards from 41.37% in March 2020 to 33.12% in December 2024. This indicates a potential decline in the company's ability to control production costs and maintain pricing power.
The Operating Profit Margin, representing the proportion of revenue that remains after deducting operating expenses, shows a more erratic pattern. It ranged from 13.44% in March 2020 to -18.38% in December 2023. This suggests significant volatility in the company's operating efficiency and cost management during this period.
The Pretax Margin, which reflects the company's profitability before accounting for taxes, also exhibited considerable variability. Starting at 11.11% in March 2020, it plummeted to -21.30% in June 2024. This wide range indicates challenges in generating consistent profits relative to revenue over the years.
Lastly, the Net Profit Margin, indicating the percentage of revenue that translates into actual profit after all expenses have been deducted, showed a similar downward trend as the other profitability ratios. Starting at 9.09% in March 2020, it decreased to -20.82% in June 2024. This suggests that the company has faced significant challenges in controlling costs and generating sustainable net income during the period under review.
Overall, the analysis of International Flavors & Fragrances Inc's profitability ratios highlights a concerning trend of declining margins, indicating potential challenges in managing costs, maintaining pricing power, and generating profits over the years.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.39% | -5.65% | -6.06% | -6.47% | -6.81% | 1.59% | -4.65% | -4.33% | -3.75% | -3.64% | 2.61% | 2.32% | 1.47% | 1.27% | 0.89% | 0.92% | 4.18% | 4.45% | 4.75% | 5.50% |
| Return on assets (ROA) | 0.85% | -7.76% | -7.97% | -8.15% | -8.28% | 0.14% | -6.31% | -5.90% | -5.20% | -5.08% | 1.62% | 1.40% | 0.68% | 0.62% | 0.34% | 0.48% | 2.67% | 2.89% | 3.23% | 3.72% |
| Return on total capital | 2.03% | -13.33% | -13.81% | -14.45% | -14.63% | 3.39% | -8.76% | -8.47% | -7.20% | -7.14% | 5.26% | 4.68% | 3.00% | 2.78% | 1.90% | 1.99% | 9.59% | 10.38% | 11.38% | 12.81% |
| Return on equity (ROE) | 0.85% | -15.71% | -16.52% | -17.48% | -17.56% | 0.28% | -12.31% | -11.77% | -10.39% | -10.37% | 3.13% | 2.66% | 1.28% | 1.16% | 0.64% | 0.90% | 5.73% | 6.22% | 7.01% | 8.08% |
International Flavors & Fragrances Inc's profitability ratios have seen fluctuations over the past few years. The Operating return on assets (Operating ROA) started at a relatively healthy 5.50% in March 2020 but declined to negative values by September 2022 and remained negative through December 2024. This indicates that the company's operating income generated from its assets decreased significantly and turned into operational losses.
Similarly, the Return on assets (ROA) also showed a declining trend from 3.72% in March 2020 to negative values by September 2022, with some slight fluctuations along the way. This suggests that the overall net income generated by the company relative to its total assets decreased, indicating lower profitability levels.
The Return on total capital started at 12.81% in March 2020 but suffered a downward trend, turning negative by September 2022. This ratio remained negative until December 2024, suggesting that the company struggled to generate returns on its invested capital.
The Return on equity (ROE) followed a similar pattern, starting at 8.08% in March 2020 and declining to negative values by September 2022. The ROE remained negative through December 2024, indicating a decrease in the returns available to the company's shareholders relative to their equity investments.
Overall, the decreasing trend in these profitability ratios signals challenges faced by International Flavors & Fragrances Inc in generating returns from its assets, total capital, and equity over the years, potentially indicating operational inefficiencies or other underlying issues impacting its financial performance.