NewMarket Corporation (NEU)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.07% | 23.56% | 23.65% | 29.78% | 29.20% |
| Operating profit margin | 18.18% | 13.07% | 11.13% | 15.61% | 15.64% |
| Pretax margin | 18.40% | 12.79% | 10.69% | 16.58% | 15.37% |
| Net profit margin | 14.64% | 10.28% | 8.24% | 13.54% | 11.79% |
NewMarket Corp.'s profitability ratios indicate a positive trend over the past five years. The gross profit margin has shown steady improvement, increasing from 23.25% in 2021 to 28.63% in 2023, indicating efficient management of production and sales costs. The operating profit margin has also demonstrated consistent growth, reaching 17.90% in 2023, reflecting effective operational management.
Moreover, the pretax margin has shown a similar upward trajectory, increasing from 10.51% in 2021 to 18.12% in 2023, indicating improved profitability before accounting for taxes. The net profit margin, a key indicator of overall profitability, has also shown positive growth, rising from 8.08% in 2021 to 14.36% in 2023, reflecting the company's ability to control expenses and generate higher bottom-line profits.
Overall, NewMarket Corp.'s profitability ratios suggest that the company has been successful in improving its operational efficiency and generating higher profits over the past five years, which can be a positive signal for investors and stakeholders.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.92% | 14.76% | 10.08% | 16.12% | 17.89% |
| Return on assets (ROA) | 16.84% | 11.61% | 7.46% | 13.99% | 13.49% |
| Return on total capital | 30.59% | 21.68% | 18.16% | 26.32% | 27.21% |
| Return on equity (ROE) | 36.10% | 36.67% | 25.05% | 35.61% | 37.23% |
NewMarket Corp.'s profitability ratios have shown varying trends over the past five years. The Operating return on assets (Operating ROA) has fluctuated, with a significant increase in 2023 to 20.92%, indicating that the company's operating income generated from its assets has improved compared to the previous year. This suggests efficient asset utilization in generating operating profits.
Return on assets (ROA) has also shown fluctuations, peaking in 2023 at 16.78%. This ratio signifies the company's ability to generate profits from its total assets, with the 2023 figure indicating a solid performance in utilizing assets to generate profits for shareholders.
Return on total capital has exhibited an upward trend, reaching 27.75% in 2023. This ratio reflects the company's capability to generate profits in relation to its total invested capital, including both debt and equity. The increasing trend signals that the company is effectively utilizing both debt and equity to generate returns for its investors.
Return on equity (ROE) has shown some volatility but generally remained at relatively high levels, indicating that the company is effectively generating profits from shareholders' equity. The 2023 figure of 35.98% points to a strong performance in generating returns for equity investors.
Overall, NewMarket Corp. has demonstrated strong profitability performance over the years, with improvements in Operating ROA, ROA, Return on total capital, and ROE, suggesting efficient management of assets and capital to generate favorable returns for both shareholders and investors.