Innospec Inc (IOSP)

Net profit margin

		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
Net income (ttm)	US$ in thousands	33,200	145,100	150,100	147,300	139,000	127,000	126,400	129,600	133,000	131,300	116,000	106,000	92,800	91,700	81,000	19,000	28,700	37,200	54,600	116,500
Revenue (ttm)	US$ in thousands	1,845,600	1,873,500	1,894,100	1,939,500	1,948,800	1,964,800	2,013,700	2,000,900	1,963,700	1,866,200	1,729,300	1,616,200	1,483,400	1,380,200	1,269,200	1,159,600	1,192,200	1,272,800	1,379,600	1,497,100
Net profit margin		1.80%	7.74%	7.92%	7.59%	7.13%	6.46%	6.28%	6.48%	6.77%	7.04%	6.71%	6.56%	6.26%	6.64%	6.38%	1.64%	2.41%	2.92%	3.96%	7.78%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $33,200K ÷ $1,845,600K
= 1.80%

Net profit margin, a key financial ratio that indicates the profitability of a company, shows the percentage of each dollar of revenue that translates into profit after all expenses.

For Innospec Inc, the net profit margin fluctuated over the data period. It started at 7.78% on March 31, 2020, decreased steadily to a low of 1.64% on March 31, 2021, and then started to recover. The margin improved to 7.92% on June 30, 2024, indicating a strong performance in generating profits from its revenue.

However, there was a significant drop to 1.80% by December 31, 2024, which could suggest a potential issue affecting profitability during that period that would require further investigation.

Overall, Innospec Inc has shown varying levels of net profit margin over time, demonstrating the importance of monitoring and analyzing this ratio to assess the company's financial performance and efficiency in converting sales into profits.