Ingredion Incorporated (INGR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.10% | 21.43% | 18.80% | 19.31% | 21.25% |
| Operating profit margin | 11.88% | 11.73% | 9.59% | 10.28% | 9.72% |
| Pretax margin | 12.53% | 10.28% | 8.41% | 3.60% | 8.45% |
| Net profit margin | 8.71% | 7.88% | 6.19% | 1.70% | 5.81% |
Ingredion Incorporated's profitability ratios demonstrate varying levels of performance over the five-year period from 2020 to 2024.
1. Gross Profit Margin:
- The gross profit margin shows a decline from 21.25% in 2020 to 18.80% in 2022 before increasing to 24.10% in 2024.
- This indicates that the company's ability to generate profits from its core operations improved significantly in 2024 compared to the previous years.
2. Operating Profit Margin:
- The operating profit margin ranged from 9.72% in 2020 to 11.88% in 2024, with slight fluctuations in between.
- Overall, there is a positive trend in operating profitability, showing an improvement over the years.
3. Pretax Margin:
- The pretax margin experienced a significant drop from 8.45% in 2020 to 3.60% in 2021, followed by a steady increase to 12.53% in 2024.
- The recovery in the pretax margin after a decline in 2021 suggests that the company implemented effective strategies to enhance profitability.
4. Net Profit Margin:
- The net profit margin also declined in 2021 to 1.70% but rebounded in the subsequent years, reaching 8.71% in 2024.
- The rising trend in net profit margin indicates improved efficiency in cost management and revenue generation leading to higher profitability in 2024.
In conclusion, while Ingredion faced profitability challenges in 2021, the company managed to enhance its overall profitability metrics by 2024, as reflected in the increasing margins. This suggests that the company successfully implemented strategies to improve its financial performance over the analyzed period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.86% | 12.52% | 10.08% | 10.13% | 8.49% |
| Return on assets (ROA) | 8.69% | 8.41% | 6.51% | 1.67% | 5.07% |
| Return on total capital | 25.50% | 26.94% | 23.88% | 10.27% | 19.72% |
| Return on equity (ROE) | 17.01% | 18.17% | 15.40% | 3.73% | 11.67% |
Ingredion Incorporated's profitability ratios have shown fluctuations over the years, indicating changes in the company's ability to generate profits relative to its assets and capital structure.
1. Operating return on assets (Operating ROA) increased steadily from 8.49% in 2020 to a peak of 12.52% in 2023, before slightly decreasing to 11.86% in 2024. This metric reflects the company's operating earnings generated per dollar of assets, showing an improvement in operational efficiency over the period.
2. Return on assets (ROA) experienced some variability, starting at 5.07% in 2020, then dropping to 1.67% in 2021 before increasing to 8.69% by 2024. ROA indicates the company's overall profitability based on its total assets, with the recent upward trend suggesting an enhanced ability to generate earnings from its asset base.
3. Return on total capital exhibited fluctuations, ranging from 19.72% in 2020 to 25.50% in 2024. This ratio assesses the company's profitability in relation to both debt and equity capital invested, showing a general increase in returns on the total capital employed by the company.
4. Return on equity (ROE) fluctuated over the years, starting at 11.67% in 2020, hitting a low of 3.73% in 2021, and then rising to 17.01% by 2024. ROE reflects the return generated for equity shareholders, with the recent improvement indicating enhanced profitability and efficiency in utilizing shareholder funds.
Overall, the profitability ratios of Ingredion Incorporated suggest fluctuations but also show an overall positive trend towards improved operational efficiency and profitability, albeit with some variability in performance across the years.