Ingredion Incorporated (INGR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.43% | 18.80% | 19.31% | 21.32% | 21.16% |
| Operating profit margin | 11.73% | 9.59% | 4.50% | 9.76% | 10.71% |
| Pretax margin | 10.18% | 8.28% | 3.48% | 8.38% | 9.21% |
| Net profit margin | 7.88% | 6.19% | 1.70% | 5.83% | 6.66% |
Based on the profitability ratios of Ingredion Inc over the past five years, we can observe the following trends:
1. Gross Profit Margin:
The gross profit margin has fluctuated over the years but generally maintained a range between 18.80% and 21.43%. This indicates the company's ability to efficiently manage its production costs and generate profits from its core operations.
2. Operating Profit Margin:
Ingredion Inc's operating profit margin has shown a moderate increase from 9.80% in 2022 to 11.76% in 2023. This suggests improvement in the company's cost control and operational efficiency, resulting in higher profitability from its regular business activities.
3. Pretax Margin:
The pretax margin has varied significantly, with a notable increase from 3.60% in 2021 to 10.28% in 2023. This improvement may be attributed to better management of operating expenses and other income or expense items affecting the company's pre-tax profitability.
4. Net Profit Margin:
Ingredion Inc's net profit margin has also shown improvement over the years, reaching 7.88% in 2023 compared to 6.19% in 2022. This indicates that the company has been successful in controlling its overall expenses and generating higher net income relative to its revenue.
Overall, the profitability ratios reflect positive trends in Ingredion Inc's ability to generate profits from its operations and manage costs effectively. The company's focus on improving operational efficiency and profitability margins bodes well for its financial performance and potential growth prospects.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.52% | 10.08% | 4.43% | 8.49% | 10.99% |
| Return on assets (ROA) | 8.41% | 6.51% | 1.67% | 5.07% | 6.84% |
| Return on total capital | 18.13% | 14.98% | 6.41% | 12.39% | 14.80% |
| Return on equity (ROE) | 18.17% | 15.63% | 3.77% | 11.79% | 15.18% |
Ingredion Inc's profitability ratios show a generally positive trend over the past five years.
- Operating return on assets (Operating ROA) has shown improvement, increasing from 10.30% in 2022 to 12.56% in 2023, indicating the company's ability to generate operating profits from its assets has strengthened.
- Return on assets (ROA) has also shown a positive trend, with a notable increase from 1.67% in 2021 to 8.41% in 2023, reflecting an increase in the company's overall profitability in relation to its total assets.
- Return on total capital has also shown improvement, increasing from 13.84% in 2022 to 16.77% in 2023, indicating that the company is generating higher returns on its total capital employed.
- Return on equity (ROE) has displayed a positive trend, increasing from 3.77% in 2021 to 18.17% in 2023, showcasing the company's ability to generate profits from the shareholders' equity.
Overall, the profitability ratios of Ingredion Inc indicate an increasing profitability and efficiency in utilizing its assets and capital over the past five years.