Koppers Holdings Inc (KOP)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 4.99% | 3.97% | 4.34% | 5.74% | 3.34% |
| Operating profit margin | 9.37% | 7.11% | 9.55% | 9.67% | 7.31% |
| Pretax margin | 5.95% | 4.91% | 7.31% | 8.83% | 3.89% |
| Net profit margin | 4.28% | 3.28% | 5.20% | 7.53% | 3.89% |
Koppers Holdings Inc has shown varying levels of profitability over the past five years, as indicated by its profitability ratios. The gross profit margin, a measure of the company's ability to generate revenue after accounting for direct costs of goods sold, has fluctuated within a range of 17.40% to 21.59%. This indicates that the company has been able to maintain a reasonable level of gross profit relative to its revenue, though there was a slight decline in 2022.
The operating profit margin, which reflects the company's ability to generate profits from its core business activities after accounting for operating expenses, also shows fluctuations over the years, ranging from 6.83% to 9.78%. This suggests that the company has been moderately successful in controlling its operating expenses to improve profitability, with a notable increase in 2020.
The pretax margin, a measure of the company's profitability before accounting for taxes, has shown variability from 4.82% to 7.12%. This indicates that the company's ability to generate profits before tax has been inconsistent over the years, with a notable improvement in 2021.
The net profit margin, which represents the company's profitability after accounting for all expenses including taxes, displays a similar pattern with fluctuations between 3.20% and 7.31%. The company has experienced varying levels of net profitability, with a peak in 2020 followed by a decline in 2021 and 2022.
Overall, Koppers Holdings Inc has demonstrated mixed profitability performance over the years, with some improvements in 2020 and 2021 followed by declines in 2022 and 2023. This variability in profitability ratios suggests that the company may need to focus on optimizing its cost structure and revenue generation strategies to enhance long-term profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.63% | 8.05% | 9.42% | 9.80% | 7.99% |
| Return on assets (ROA) | 4.86% | 3.70% | 5.13% | 7.63% | 4.26% |
| Return on total capital | 14.61% | 11.49% | 13.48% | 17.33% | 12.36% |
| Return on equity (ROE) | 17.88% | 15.87% | 20.95% | 35.70% | 45.21% |
Looking at Koppers Holdings Inc's profitability ratios over the past five years, we can see some fluctuations in the company's performance.
1. Operating return on assets (Operating ROA) has generally shown an upward trend, increasing from 7.67% in 2021 to 10.54% in 2023. This indicates that the company is generating more operating income from its assets over time.
2. Return on assets (ROA) experienced some variability, with a peak of 7.63% in 2020 and a low of 3.70% in 2022. The 2023 figure of 4.86% suggests the company's ability to generate profits relative to its total assets has improved compared to the previous year.
3. Return on total capital has also displayed a mixed pattern, with the highest figure of 14.60% in 2020 and the lowest of 10.71% in 2021. The ratio rebounded to 14.44% in 2023, indicating that the company is effectively utilizing its total capital to generate returns for its shareholders.
4. Return on equity (ROE) has been relatively volatile, with a substantial decrease from 45.21% in 2019 to 17.88% in 2023. Despite the recent decline, the ROE remains healthy, showing that the company is still generating a significant return on the equity invested by shareholders.
Overall, while Koppers Holdings Inc's profitability ratios have fluctuated over the years, the company has demonstrated an ability to efficiently utilize its assets and generate returns for its capital providers. Continued monitoring of these ratios will be essential to assess the company's financial health and performance in the future.