NewMarket Corporation (NEU)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.81% | 28.63% | 23.17% | 23.25% | 29.59% |
| Operating profit margin | 21.17% | 17.90% | 12.85% | 10.94% | 15.51% |
| Pretax margin | 20.96% | 18.12% | 12.58% | 10.51% | 16.47% |
| Net profit margin | 16.59% | 14.41% | 10.11% | 8.10% | 13.45% |
NewMarket Corporation's profitability ratios show varying performance trends over the years. The gross profit margin, which reflects the company's ability to generate profits from its core operations, decreased from 29.59% in 2020 to 23.25% in 2021 but has since shown a slight improvement to 23.17% in 2022, followed by more significant increases to 28.63% in 2023 and 31.81% in 2024.
When considering the operating profit margin, which indicates the efficiency of the company in managing its operating expenses in relation to revenue, NewMarket Corporation saw a decline from 15.51% in 2020 to 10.94% in 2021. However, the company's operational efficiency improved in the following years, with margins of 12.85% in 2022, 17.90% in 2023, and 21.17% in 2024.
The pretax margin, which reflects the company's ability to control non-operating expenses, decreased from 16.47% in 2020 to 10.51% in 2021 before gradually increasing to 12.58% in 2022, 18.12% in 2023, and 20.96% in 2024.
Overall, NewMarket Corporation's net profit margin, which represents the percentage of revenue that translates into profit after all expenses are deducted, decreased from 13.45% in 2020 to 8.10% in 2021. Subsequently, the company experienced improvements in profitability, with margins of 10.11% in 2022, 14.41% in 2023, and 16.59% in 2024. These trends suggest that the company has been working towards enhancing its profitability and efficiency in recent years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.85% | 20.92% | 14.76% | 10.08% | 16.12% |
| Return on assets (ROA) | 14.78% | 16.84% | 11.61% | 7.46% | 13.99% |
| Return on total capital | 43.89% | 44.85% | 50.23% | 36.97% | 43.25% |
| Return on equity (ROE) | 31.64% | 36.10% | 36.67% | 25.05% | 35.61% |
NewMarket Corporation's profitability ratios show fluctuations over the five-year period.
1. Operating Return on Assets (Operating ROA) ranged from 10.08% in 2021 to a peak of 20.92% in 2023, indicating the company's ability to generate income from its operating activities relative to its total assets.
2. Return on Assets (ROA) varied from 7.46% in 2021 to 16.84% in 2023, demonstrating the company's efficiency in utilizing its assets to generate profits.
3. Return on Total Capital ranged from 36.97% in 2021 to 50.23% in 2022, showing the returns generated from all forms of capital invested in the company.
4. Return on Equity (ROE) fluctuated from 25.05% in 2021 to 36.67% in 2022, revealing the returns earned by the company for each unit of shareholder equity.
Overall, NewMarket Corporation's profitability ratios indicate varying levels of performance over the five-year period, with improvements in certain years and fluctuations in others.