International Seaways Inc (INSW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 65.95% | 58.55% | 54.42% | -13.87% | 40.12% |
| Operating profit margin | 47.84% | 57.42% | 51.28% | -20.23% | 31.19% |
| Pretax margin | 43.68% | 52.28% | 44.87% | -48.81% | -1.31% |
| Net profit margin | 43.79% | 51.92% | 44.86% | -49.41% | -1.31% |
Based on the provided data, we can analyze the profitability ratios of International Seaways Inc over the past five years.
1. Gross Profit Margin:
- The gross profit margin measures the percentage of revenue that exceeds the cost of goods sold.
- International Seaways Inc's gross profit margin has shown variability over the years, ranging from -13.87% in 2021 to a peak of 65.95% in 2024.
- The significant improvement in the gross profit margin from 2021 to 2024 indicates a positive trend in managing production costs.
2. Operating Profit Margin:
- The operating profit margin reflects the company's ability to generate profit from its core operations.
- International Seaways Inc experienced a notable decline in 2021 with a negative operating profit margin of -20.23%, followed by a recovery and improvement to 57.42% in 2023.
- The company demonstrated strong operational efficiency in 2023, as indicated by the high operating profit margin.
3. Pretax Margin:
- The pretax margin represents the company's profitability before taxes.
- International Seaways Inc's pretax margin was negative in 2020 and 2021, but it significantly improved in subsequent years, reaching 52.28% in 2023.
- The positive trend in pretax margin suggests effective cost management and operational performance in the later years.
4. Net Profit Margin:
- The net profit margin indicates how effectively the company turns revenue into profit after all expenses are deducted.
- International Seaways Inc's net profit margin was negative in 2020 and 2021 but showed a strong recovery in 2022 and remained relatively stable around 50% in 2023 and 2024.
- The consistent improvement in net profit margin reflects the company's ability to translate revenue into sustainable profitability.
In conclusion, International Seaways Inc has shown varied performance in its profitability ratios over the past five years, with notable improvements in gross, operating, pretax, and net profit margins from 2021 onwards. These positive trends suggest effective cost management, operational efficiency, and overall improved profitability for the company.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.27% | 24.40% | 16.95% | -2.35% | 8.29% |
| Return on assets (ROA) | 15.81% | 22.07% | 14.83% | -5.74% | -0.35% |
| Return on total capital | 25.07% | 35.84% | 30.04% | -9.40% | 2.73% |
| Return on equity (ROE) | 22.45% | 32.41% | 26.07% | -11.88% | -0.57% |
International Seaways Inc's profitability ratios have shown a fluctuating trend over the years.
- The Operating Return on Assets (Operating ROA) improved significantly from 2021 to 2024, with a strong increase from -2.35% to 24.40%. This indicates that the company's operating earnings generated from its assets have been increasing steadily.
- Similarly, the Return on Assets (ROA) also displayed a positive progression, rising from -5.74% in 2021 to 15.81% in 2024. This metric reflects the overall efficiency of the company in generating profits from its total assets.
- International Seaways Inc's Return on Total Capital exhibited a substantial improvement from -9.40% in 2021 to 25.07% in 2024, indicating the effectiveness of the company in generating returns from its total invested capital.
- The Return on Equity (ROE) showed a mixed performance, increasing from -11.88% in 2021 to 32.41% in 2023, but then slightly declining to 22.45% in 2024. ROE reflects the company's ability to generate returns from shareholders' equity.
Overall, International Seaways Inc has shown positive momentum in its profitability ratios, with notable improvements in operating efficiency, asset utilization, and capital management over the years.