Mercer International Inc (MERC)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | -14.93% | -9.27% | -3.10% | 7.93% | 14.32% | 19.19% | 19.83% | 17.88% | 14.29% | 11.09% | 7.20% | 7.12% | 9.61% | 3.94% | 4.31% | 6.19% | 10.09% | 31.68% | 49.30% | 67.97% |
| Operating profit margin | -9.92% | -4.21% | 1.29% | 11.62% | 17.63% | 21.89% | 22.83% | 21.75% | 20.22% | 14.41% | 9.04% | 6.51% | 4.69% | -1.39% | -0.96% | 1.01% | 5.36% | 15.29% | 18.63% | 19.25% |
| Pretax margin | -14.18% | -7.67% | -1.67% | 9.13% | 15.51% | 20.04% | 20.85% | 19.00% | 15.20% | 8.13% | 2.40% | -0.32% | -0.82% | -6.84% | -6.84% | -4.48% | 0.61% | 10.38% | 13.93% | 14.71% |
| Net profit margin | -12.72% | -6.66% | -2.01% | 5.93% | 11.10% | 13.89% | 14.45% | 13.22% | 9.98% | 5.18% | 1.50% | -0.57% | -1.27% | -5.96% | -6.14% | -4.49% | -0.61% | 6.86% | 9.65% | 10.43% |
Mercer International Inc.'s profitability ratios have shown a declining trend over the quarters. The gross profit margin decreased from 28.16% in Q4 2022 to 7.04% in Q4 2023, indicating a significant decline in the company's ability to generate profits after accounting for the cost of goods sold.
Similarly, the operating profit margin also decreased from 17.20% in Q4 2022 to -7.78% in Q4 2023, signifying that the company's operating expenses are exceeding its operating income. This negative trend is further reflected in the pretax margin, which declined from 15.14% in Q4 2022 to -13.53% in Q4 2023, indicating a substantial decrease in profitability before accounting for taxes.
The net profit margin, which represents the company's bottom line profitability, decreased from 10.83% in Q4 2022 to -12.14% in Q4 2023. This indicates that Mercer International Inc. is experiencing a significant decline in its ability to generate profits after accounting for all expenses and taxes.
Overall, the declining trend in profitability ratios for Mercer International Inc. suggests potential challenges in the company's financial performance and operational efficiency, which may require strategic interventions to improve profitability in the future.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -7.09% | -3.21% | 1.03% | 9.12% | 14.40% | 18.67% | 19.87% | 17.01% | 14.74% | 10.41% | 5.97% | 4.16% | 2.99% | -0.88% | -0.66% | 0.74% | 4.07% | 12.37% | 14.08% | 14.17% |
| Return on assets (ROA) | -9.09% | -5.08% | -1.60% | 4.65% | 9.07% | 11.85% | 12.58% | 10.34% | 7.27% | 3.74% | 0.99% | -0.36% | -0.81% | -3.76% | -4.22% | -3.31% | -0.47% | 5.54% | 7.29% | 7.68% |
| Return on total capital | -8.41% | -3.77% | 1.26% | 11.35% | 17.95% | 23.07% | 24.03% | 20.56% | 17.94% | 12.97% | 7.50% | 5.14% | 3.56% | -1.07% | -0.75% | 1.04% | 5.32% | 14.87% | 17.03% | 16.95% |
| Return on equity (ROE) | -38.09% | -20.26% | -5.74% | 15.50% | 29.45% | 41.86% | 40.41% | 33.05% | 24.64% | 13.30% | 3.63% | -1.39% | -2.87% | -13.98% | -16.86% | -13.97% | -1.75% | 18.28% | 22.90% | 24.90% |
Mercer International Inc.'s profitability ratios exhibit fluctuations over the past eight quarters. The Operating return on assets (Operating ROA) has been declining, from a low of -5.82% in Q4 2023 to a high of 18.67% in Q3 2022, indicating a decreasing trend in the company's operational efficiency in generating profits relative to its assets. Similarly, the Return on assets (ROA) also shows a decreasing trend, ranging from -9.09% in Q4 2023 to 12.58% in Q2 2022, which suggests a reduction in the company's overall profitability in relation to its total assets.
In terms of Return on total capital, a similar pattern is observed with a decline in profitability, fluctuating between -6.88% in Q4 2023 and a peak of 23.95% in Q2 2022. This ratio reflects the company's ability to generate profits from its total invested capital, including both equity and debt.
The Return on equity (ROE) portrays the company's profitability in relation to shareholders' equity, illustrating a significant drop from -38.09% in Q4 2023 to 41.86% in Q3 2022. The erratic trend in ROE indicates fluctuations in the company's ability to generate profits from shareholders' investments.
Overall, the declining trend in Mercer International Inc.'s profitability ratios, particularly in the recent quarters, suggests potential challenges in effectively utilizing its assets and capital to generate returns for its stakeholders. Further analysis and investigation may be warranted to understand the underlying factors contributing to these fluctuations and to implement strategies for improving the company's profitability in the future.