Koppers Holdings Inc (KOP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.20% | 17.02% | 17.40% | 19.90% | 21.59% |
| Operating profit margin | 7.08% | 9.06% | 6.95% | 9.32% | 9.39% |
| Pretax margin | 3.31% | 5.78% | 4.82% | 7.12% | 6.60% |
| Net profit margin | 2.50% | 4.14% | 3.20% | 5.08% | 5.34% |
Koppers Holdings Inc's profitability ratios show a declining trend over the years.
1. Gross Profit Margin: The gross profit margin, a measure of a company's efficiency in producing goods, decreased from 21.59% in 2020 to 17.02% in 2023 before showing a slight improvement to 20.20% in 2024. This indicates a decline in the company's ability to generate profits from its core operations.
2. Operating Profit Margin: The operating profit margin, which reflects the company's ability to control operating expenses, fluctuated over the years, ranging from 6.95% in 2022 to 9.39% in 2020. However, it showed a downward trend, reaching 7.08% in 2024. This suggests challenges in managing operating costs effectively.
3. Pretax Margin: The pretax margin, representing the percentage of each dollar of revenue that translates into pre-tax profit, declined from 7.12% in 2021 to 3.31% in 2024. This indicates decreasing profitability before accounting for taxes.
4. Net Profit Margin: The net profit margin, a key indicator of overall profitability, dropped from 5.34% in 2020 to 2.50% in 2024, signaling decreasing profitability after accounting for all expenses, including taxes.
In conclusion, Koppers Holdings Inc's profitability ratios exhibit a diminishing trend over the years, reflecting challenges in maintaining profitability and controlling costs. This analysis suggests that the company may need to focus on improving operational efficiency and cost management to enhance its overall profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.84% | 10.63% | 8.05% | 9.42% | 9.80% |
| Return on assets (ROA) | 2.77% | 4.86% | 3.70% | 5.13% | 5.57% |
| Return on total capital | 29.77% | 39.21% | 35.10% | 39.38% | 46.53% |
| Return on equity (ROE) | 10.72% | 17.88% | 15.87% | 20.95% | 26.08% |
Koppers Holdings Inc's profitability ratios exhibit some fluctuations over the five-year period.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA decreased from 9.80% in 2020 to 8.05% in 2022 before rebounding to 10.63% in 2023. However, it dropped to 7.84% by the end of 2024. This metric indicates the company's ability to generate operating income from its assets.
2. Return on Assets (ROA):
- The ROA also followed a declining trend, starting at 5.57% in 2020 and reaching its lowest point of 2.77% in 2024. ROA reflects the company's overall ability to generate profit from its assets.
3. Return on Total Capital:
- The Return on Total Capital decreased from 46.53% in 2020 to 29.77% in 2024. This ratio signifies the efficiency of the company in generating returns from both equity and debt capital employed.
4. Return on Equity (ROE):
- The ROE trend mirrors the other ratios, declining from 26.08% in 2020 to 10.72% in 2024. ROE measures the return on shareholders' equity investment in the company.
Overall, the decreasing trend in these profitability ratios indicates a potential decrease in the company's ability to generate profit efficiently from its assets and capital over the five-year period. Further analysis of the company's operational and financial strategies may be needed to address these declining profitability metrics.