NewMarket Corporation (NEU)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	462,413	388,864	279,538	190,908	270,568
Revenue	US$ in thousands	2,786,560	2,698,420	2,764,800	2,356,110	2,010,930
Net profit margin		16.59%	14.41%	10.11%	8.10%	13.45%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $462,413K ÷ $2,786,560K
= 16.59%

The net profit margin of NewMarket Corporation has shown fluctuations over the past five years. In December 31, 2020, the net profit margin was 13.45%, indicating that the company was able to generate a net profit of 13.45 cents for every dollar of revenue. However, this margin decreased to 8.10% by December 31, 2021, suggesting a decrease in profitability relative to revenue.

Subsequently, there was an improvement in the net profit margin to 10.11% by December 31, 2022, demonstrating a recovery in the company's profitability. The trend continued positively as the net profit margin further increased to 14.41% by December 31, 2023, indicating that the company was able to generate more profit from its revenue.

By December 31, 2024, the net profit margin reached 16.59%, the highest among the analyzed years, demonstrating a significant improvement in profitability. This suggests that NewMarket Corporation has been able to effectively control costs and increase efficiencies to generate higher profits relative to its revenue.

Overall, the trend in the net profit margin of NewMarket Corporation shows variations over the years, with fluctuations in profitability levels. The company's ability to maintain and improve its net profit margin over time indicates effective management of costs and a healthy financial performance.