PBF Energy Inc (PBF)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | -1.12% | 6.09% | 9.38% | 2.42% | -9.35% |
| Operating profit margin | -2.11% | 7.72% | 8.93% | 2.21% | -9.25% |
| Pretax margin | -2.30% | 7.49% | 7.44% | 0.90% | -9.08% |
| Net profit margin | -1.61% | 5.60% | 6.18% | 0.85% | -9.09% |
Based on the provided data, let's analyze the profitability ratios of PBF Energy Inc:
1. Gross Profit Margin:
- PBF Energy had a negative gross profit margin of -9.35% in December 2020, indicating that the company incurred more costs of goods sold than the revenue generated from sales.
- Over the following years, the gross profit margin improved significantly, reaching 9.38% in December 2022. However, it slightly decreased to 6.09% by December 2023 and turned negative again at -1.12% by December 2024.
- Overall, the fluctuating trend in the gross profit margin suggests varying cost efficiencies and pricing strategies within the company's operations.
2. Operating Profit Margin:
- Similar to the gross profit margin, the operating profit margin of PBF Energy was negative at -9.25% in December 2020, but it improved progressively to reach 8.93% by December 2022.
- However, the operating profit margin declined to 7.72% by December 2023 and further decreased to -2.11% by December 2024, indicating challenges in managing operating expenses efficiently.
- The fluctuating trend in the operating profit margin reflects the company's ability to control operating costs and improve operational efficiency.
3. Pretax Margin:
- PBF Energy's pretax margin was negative at -9.08% in December 2020 but turned positive at 7.44% by December 2022, demonstrating an improvement in generating profit before taxes.
- Despite the positive trend, the pretax margin slightly declined to 7.49% in December 2023 and became negative at -2.30% by December 2024, signaling potential issues affecting the company's profitability at the pre-tax level.
- The varying pretax margin highlights the impact of operational performance and external factors on the company's pre-tax profitability.
4. Net Profit Margin:
- The net profit margin of PBF Energy was negative at -9.09% in December 2020 and improved to 6.18% by December 2022.
- However, the net profit margin decreased to 5.60% by December 2023 and turned negative at -1.61% by December 2024, suggesting challenges in sustaining profitability after accounting for all costs and taxes.
- The fluctuating trend in the net profit margin reflects the overall profitability performance of PBF Energy, considering both operational and non-operational factors.
In conclusion, the analysis of profitability ratios indicates that while PBF Energy Inc showed improvements in profitability margins during certain periods, the company faced challenges in maintaining consistent profitability levels over the years, possibly due to fluctuations in costs, pricing strategies, operational efficiency, and external factors impacting overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -5.50% | 20.51% | 30.65% | 5.13% | -13.49% |
| Return on assets (ROA) | -4.20% | 14.88% | 21.23% | 1.98% | -13.26% |
| Return on total capital | -9.86% | 37.86% | 58.26% | 9.01% | -17.98% |
| Return on equity (ROE) | -9.63% | 32.99% | 58.36% | 11.99% | -84.76% |
PBF Energy Inc's profitability ratios exhibit fluctuating performance over the period from December 31, 2020, to December 31, 2024. Starting with the Operating return on assets (Operating ROA), the company experienced negative returns in 2020 and 2024, indicating operational inefficiencies. However, there was a significant improvement in 2022 and 2023, where the company achieved high returns, reflecting better asset utilization and operational performance.
The Return on assets (ROA) also displays a similar trend, with negative returns in 2020 and 2024 but positive returns in 2021, 2022, and 2023. This highlights a mix of challenges and opportunities in effectively generating profits from the total assets employed by the company.
Looking at the Return on total capital, there is a notable increase in returns from 2020 to 2022, showing improved efficiency in generating profits from the total capital invested. However, the return decreased in 2023 and turned negative in 2024, indicating potential challenges in utilizing the total capital effectively.
Lastly, the Return on equity (ROE) shows a turnaround in profitability, with a drastic improvement from negative returns in 2020 to positive returns in the subsequent years. This signifies that shareholders' equity was generating decent returns for investors, although a decline was observed in 2024.
Overall, PBF Energy Inc's profitability ratios reflect a mixed performance, with periods of high profitability interspersed with challenges in operational efficiency and capital utilization. The company may need to focus on improving asset management and capital deployment to sustain and enhance its profitability in the future.