Packaging Corp of America (PKG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.01% | 25.00% | 25.03% | 20.94% | 24.22% |
| Operating profit margin | 13.93% | 16.99% | 16.59% | 11.07% | 15.52% |
| Pretax margin | 13.14% | 16.32% | 14.82% | 9.68% | 13.51% |
| Net profit margin | 9.92% | 12.31% | 11.24% | 7.05% | 10.26% |
Packaging Corp Of America's profitability ratios have shown fluctuations over the past five years.
The gross profit margin has decreased from 24.66% in 2022 to 21.77% in 2023, indicating a decline in the company's ability to generate profits after accounting for the cost of goods sold. However, the current gross profit margin is still within a reasonable range compared to historical data.
The operating profit margin has also decreased from 17.48% in 2022 to 14.33% in 2023, suggesting a decline in the company's profitability from its core operations. This may indicate challenges in controlling operating expenses or generating sufficient revenue to cover costs.
The pretax margin has decreased from 16.10% in 2022 to 13.00% in 2023, reflecting a decrease in profitability before accounting for taxes. This could be due to various factors such as lower revenue or higher expenses impacting the company's overall profitability.
The net profit margin has also decreased from 12.05% in 2022 to 9.73% in 2023, indicating a decrease in the company's profitability after all expenses, including taxes, have been accounted for. This suggests that the company may be facing challenges in managing its overall profitability and efficiency.
Overall, the downward trend in profitability margins for Packaging Corp Of America raises concerns about its ability to maintain and improve its profitability in the future. It may be crucial for the company to closely monitor and address the factors contributing to these declines to sustain its financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.38% | 17.75% | 15.84% | 9.74% | 14.56% |
| Return on assets (ROA) | 8.81% | 12.87% | 10.73% | 6.20% | 9.62% |
| Return on total capital | 16.62% | 23.14% | 20.42% | 12.64% | 18.99% |
| Return on equity (ROE) | 19.14% | 28.08% | 23.32% | 14.20% | 22.68% |
Packaging Corp Of America's profitability ratios have shown a consistent trend over the past five years.
- Operating return on assets (Operating ROA) has fluctuated but generally remained healthy, ranging from 11.16% in 2020 to 18.52% in 2022. The latest figure for 2023 stands at 12.88%.
- Return on assets (ROA) has also displayed a similar pattern, with values varying between 6.15% in 2020 to 12.77% in 2022. For 2023, the ROA is reported at 8.74%.
- Return on total capital has demonstrated an upward trajectory, increasing from 14.45% in 2020 to 24.08% in 2022. The latest figure for 2023 is reported at 16.25%.
- Return on equity (ROE) has shown a steady rise from 14.09% in 2020 to 27.87% in 2022, with the 2023 figure at 18.99%.
Overall, Packaging Corp Of America's profitability ratios indicate the company's ability to generate returns for its shareholders and effectively utilize its assets and capital to drive profitability. The company has maintained a solid performance in terms of profitability, although some ratios have experienced fluctuations over the years.