Newmont Goldcorp Corp (NEM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.62% | 25.44% | 27.38% | 36.52% | 36.38% |
| Operating profit margin | 30.97% | 5.99% | 12.26% | 14.24% | 24.55% |
| Pretax margin | 24.66% | -17.19% | -0.43% | 9.07% | 27.34% |
| Net profit margin | 18.04% | -21.11% | -4.25% | 0.08% | 24.61% |
Newmont Goldcorp Corp's profitability ratios show fluctuations over the years. The gross profit margin remained fairly stable around the mid-30% range from 2020 to 2021, dipped in 2022 and 2023, and then rebounded in 2024 to 34.62%.
The operating profit margin saw a significant decrease from 2020 to 2021, dropping from 24.55% to 14.24%, and continued to decrease in the following years. However, there was a substantial increase in 2024 to 30.97%.
The pretax margin experienced a sharp decline from 2020 to 2021, going from 27.34% to 9.07%, before turning negative in 2022 and 2023. The margin recovered in 2024 to 24.66%.
The net profit margin followed a similar pattern to the pretax margin, with a steep decline from 2020 to 2021, dropping from 24.61% to 0.08%, and then turning negative in 2022 and 2023. However, there was a significant recovery in 2024 to 18.04%.
In conclusion, it is evident that Newmont Goldcorp Corp's profitability ratios have been volatile, with fluctuations in margins over the years. The company faced challenges in 2022 and 2023 but managed to improve its profitability in 2024.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.20% | 1.28% | 3.80% | 4.29% | 6.82% |
| Return on assets (ROA) | 5.94% | -4.49% | -1.31% | 0.02% | 6.84% |
| Return on total capital | 16.48% | -6.16% | 0.91% | 6.24% | 14.93% |
| Return on equity (ROE) | 11.12% | -8.59% | -2.61% | 0.05% | 12.30% |
Newmont Goldcorp Corp's profitability ratios depict a fluctuating trend over the years. The Operating Return on Assets (Operating ROA) declined from 6.82% in 2020 to 3.80% in 2022, suggesting decreasing operational efficiency. However, there was a notable improvement to 10.20% in 2024.
The Return on Assets (ROA) was positive at 6.84% in 2020 but dropped significantly to -4.49% in 2023 before recovering to 5.94% in 2024. This indicates a period of poor asset utilization followed by some enhancement in asset management effectiveness.
Return on Total Capital started strong at 14.93% in 2020, declined over the next years, reaching a low of -6.16% in 2023, and jumped to 16.48% in 2024. This indicates varying success in generating returns from the total invested capital, with a significant rebound observed in 2024.
Return on Equity (ROE) followed a similar pattern, starting at 12.30% in 2020, dropping to -8.59% in 2023, and then recovering to 11.12% in 2024. This signifies the shareholders' returns on their invested equity experiencing fluctuations over the years.
In conclusion, while there were ups and downs in profitability ratios, Newmont Goldcorp Corp managed to improve its performance by enhancing its operational efficiency and generating better returns on both assets and capital in 2024.