Mercer International Inc (MERC)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -242,056 | 247,039 | 170,988 | -17,235 | -9,639 |
| Revenue | US$ in thousands | 1,902,410 | 2,225,980 | 1,713,880 | 1,327,140 | 1,535,420 |
| Net profit margin | -12.72% | 11.10% | 9.98% | -1.30% | -0.63% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $-242,056K ÷ $1,902,410K
= -12.72%
Mercer International Inc.'s net profit margin has exhibited fluctuating trends over the past five years. In 2023, the net profit margin experienced a significant decline to -12.14%, indicating that the company incurred losses relative to its revenue during the year. This negative performance contrasts with the positive net profit margins reported in the preceding years, with 2022 showing a favorable margin of 10.83% and 2021 at 9.48%. The company faced challenges in generating profits in 2020, as indicated by a negative net profit margin of -1.21%, and in 2019 with a margin of -0.59%.
The substantial decrease in net profit margin in 2023 raises concerns about Mercer International Inc.'s profitability and operational efficiency. It suggests potential issues such as cost management, pricing strategies, or changes in the business environment that impacted the company's financial performance. Further analysis of the underlying factors contributing to the negative net profit margin in 2023 would be essential to understand the root causes and assess the company's prospects for future profitability.