Newmont Goldcorp Corp (NEM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.54% | 28.33% | 46.66% | 50.58% | 23.83% |
| Operating profit margin | -9.38% | 8.95% | 36.92% | 48.54% | 81.26% |
| Pretax margin | -16.91% | 0.22% | 18.60% | 31.30% | 37.60% |
| Net profit margin | -21.44% | -3.63% | 9.58% | 25.07% | 29.00% |
The profitability ratios of Newmont Corp have shown variation over the past five years. The gross profit margin has fluctuated between 43.29% and 56.39%, indicating the percentage of revenue remaining after deducting the cost of goods sold. A declining trend is observed from 2021 to 2023, suggesting potential challenges in managing production costs.
The operating profit margin, reflecting earnings before interest and taxes, has also displayed fluctuations. It declined significantly in 2023 compared to the previous years, possibly indicating lower operational efficiencies or increased operating expenses impacting profitability.
The pretax margin, representing earnings before taxes, experienced a notable decline in 2023, turning negative. This could signal challenges in generating profits before accounting for taxes, possibly due to lower revenues or higher expenses influencing the company's overall financial performance.
The net profit margin, which indicates the percentage of revenue that translates into net income, showed a negative trend in recent years, with a significant drop in 2023. This suggests that after accounting for all expenses, including taxes, the company's profitability has been negatively impacted, potentially indicating operational and financial challenges affecting bottom-line results.
In conclusion, the profitability ratios of Newmont Corp demonstrate fluctuations and declines in recent years, indicating potential challenges in managing costs, operations, and generating profits. Further analysis and strategic actions may be necessary to improve the company's overall profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.97% | 2.75% | 11.08% | 13.24% | 19.66% |
| Return on assets (ROA) | -4.49% | -1.11% | 2.87% | 6.84% | 7.02% |
| Return on total capital | -5.13% | 0.52% | 8.48% | 12.62% | 13.42% |
| Return on equity (ROE) | -8.59% | -2.22% | 5.29% | 12.30% | 13.10% |
Newmont Corp's profitability ratios have exhibited some fluctuations over the past five years.
- Operating return on assets (Operating ROA) has been on a declining trend, decreasing from 7.40% in 2020 to 1.28% in 2023. This indicates that the company's operating income generated from its assets has decreased significantly.
- Return on assets (ROA) has also shown a decreasing trend, with negative values in 2023 and 2022. The negative ROA suggests that the company's net income has been insufficient to cover its total assets in those years.
- Return on total capital has experienced fluctuations but generally trended downwards over the period, declining from 10.94% in 2020 to 2.00% in 2023. This ratio indicates the return generated on the total capital employed by the company.
- Return on equity (ROE) has seen a similar downward trend, dropping from 13.10% in 2019 to -8.59% in 2023. The negative ROE values in recent years suggest that the company's net income has not been sufficient to generate a positive return for its equity shareholders.
Overall, Newmont Corp's profitability ratios reflect a challenging environment in recent years, with declining returns on assets, capital, and equity. This may indicate the need for the company to focus on improving operational efficiency and profitability in order to enhance shareholder value.