Newell Brands Inc (NWL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.61% | 28.93% | 29.96% | 31.13% | 32.81% |
| Operating profit margin | 0.88% | -1.05% | 9.32% | 8.93% | 8.65% |
| Pretax margin | -3.43% | -6.68% | 1.66% | 6.54% | -10.72% |
| Net profit margin | -2.85% | -4.77% | 2.08% | 5.87% | -8.20% |
The profitability ratios of Newell Brands Inc have shown varying trends over the five-year period from 2020 to 2024.
- Gross Profit Margin: There has been a gradual decline in the gross profit margin from 32.81% in 2020 to 28.93% in 2023, before experiencing an uptick to 33.61% in 2024. This indicates that the company's profitability on its core business operations fluctuated over the period.
- Operating Profit Margin: The operating profit margin remained relatively stable around 8-9% from 2020 to 2022, but then saw a significant drop to -1.05% in 2023, before slightly recovering to 0.88% in 2024. This suggests that the company's operating efficiency faced challenges in 2023 but showed signs of improvement in the subsequent year.
- Pretax Margin: The pretax margin fluctuated widely, ranging from -10.72% in 2020 to 6.54% in 2021, and then dropping to negative figures in 2023 and 2024. This indicates volatility in the company's profitability before taxes, with periods of both profitability and losses.
- Net Profit Margin: The net profit margin also exhibited fluctuations, showing a negative margin of -8.20% in 2020, turning positive at 5.87% in 2021, and then returning to negative margins in 2023 and 2024. The company's bottom line profitability was inconsistent over the five-year period.
Overall, the analysis of Newell Brands Inc's profitability ratios highlights the company's mixed performance in generating profits from its operations, with fluctuations in gross, operating, pretax, and net profit margins over the years. Further investigation into the factors driving these fluctuations would be necessary to assess the company's financial health accurately.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.61% | -0.70% | 6.65% | 6.67% | 5.52% |
| Return on assets (ROA) | -1.96% | -3.19% | 1.49% | 4.39% | -5.24% |
| Return on total capital | 1.27% | -2.73% | 23.47% | 27.40% | -18.71% |
| Return on equity (ROE) | -7.85% | -12.47% | 5.60% | 15.20% | -19.88% |
Newell Brands Inc's profitability ratios show a mixed performance over the past five years.
1. Operating Return on Assets (Operating ROA):
- The company's Operating ROA has improved from 5.52% in 2020 to 6.67% in 2021, remaining relatively stable at around 6.65% in 2022. However, there was a significant decline to -0.70% in 2023, followed by a slight improvement to 0.61% in 2024. This indicates that the company's operating income generated from its assets has been inconsistent.
2. Return on Assets (ROA):
- ROA fluctuated from -5.24% in 2020 to 4.39% in 2021, and then dropped to 1.49% in 2022. A notable decline was observed in 2023, with ROA falling to -3.19%, and further deteriorating to -1.96% in 2024. These trends suggest that the company's overall profitability in relation to its total assets has been unstable.
3. Return on Total Capital:
- Return on Total Capital showed a drastic improvement from -18.71% in 2020 to 27.40% in 2021. However, this metric declined to 23.47% in 2022 and further into negative territory at -2.73% in 2023. In 2024, there was a slight recovery to 1.27%. This indicates that the company's ability to generate returns from its total capital has been inconsistent.
4. Return on Equity (ROE):
- ROE declined from -19.88% in 2020 to 15.20% in 2021, followed by a further decrease to 5.60% in 2022. However, there was a significant drop to -12.47% in 2023 and a continued decline to -7.85% in 2024. This pattern suggests that the company's profitability in relation to its equity has been negatively affected in recent years.
In summary, Newell Brands Inc's profitability ratios indicate a mixed performance with fluctuations and declines observed across various metrics over the five-year period, suggesting challenges in maintaining consistent profitability and returns for the company's stakeholders.