Packaging Corp of America (PKG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 21.27% | 21.08% | 20.57% | 20.98% | 21.77% | 22.17% | 22.97% | 23.91% | 24.66% | 25.17% | 25.46% | 24.85% | 24.23% | 22.92% | 21.58% | 20.84% | 20.57% | 21.30% | 22.10% | 22.88% |
| Operating profit margin | 13.74% | 13.67% | 13.02% | 13.18% | 13.85% | 12.58% | 12.17% | 12.01% | 11.54% | 13.59% | 15.02% | 15.55% | 16.06% | 14.52% | 13.13% | 11.15% | 10.87% | 11.55% | 12.25% | 14.23% |
| Pretax margin | 12.70% | 12.49% | 11.95% | 12.15% | 13.00% | 13.29% | 14.26% | 15.36% | 16.10% | 16.02% | 16.10% | 15.25% | 14.34% | 13.42% | 11.92% | 9.80% | 9.50% | 9.60% | 10.32% | 12.36% |
| Net profit margin | 9.58% | 9.44% | 9.06% | 9.25% | 9.81% | 10.04% | 10.77% | 11.56% | 12.07% | 12.02% | 12.06% | 11.44% | 10.80% | 10.03% | 8.90% | 7.14% | 6.87% | 7.05% | 7.59% | 9.31% |
Packaging Corp of America's profitability ratios demonstrate fluctuating levels over the years. The gross profit margin has shown a decreasing trend from 22.88% in March 2020 to 21.27% in December 2024, suggesting a potential decrease in the company's ability to generate profits after accounting for the cost of goods sold.
Similarly, the operating profit margin has fluctuated over the years, with a peak of 16.06% in December 2021 but then decreasing to 13.74% by December 2024. This indicates variability in the company's ability to control its operating expenses and generate profits from its core business activities.
The pretax margin has shown an upward trend from 9.60% in September 2020 to 12.70% in December 2024, indicating the company's improving ability to generate profits before accounting for taxes.
The net profit margin, representing the company's bottom-line profitability, has fluctuated over the years, ranging from 6.87% in December 2020 to 12.07% in December 2022. This suggests varying levels of efficiency in managing costs and generating profits attributable to shareholders.
Overall, Packaging Corp of America's profitability ratios demonstrate a mixed performance, with fluctuations in different margins indicating the company's changing ability to generate profits relative to its revenue and expenses. Further analysis of the company's operational efficiency and cost management practices may be warranted to assess its overall financial health.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.04% | 12.76% | 11.50% | 11.62% | 12.17% | 12.06% | 12.06% | 12.41% | 12.22% | 13.91% | 15.15% | 15.40% | 15.84% | 12.46% | 12.14% | 9.98% | 9.74% | 10.44% | 11.32% | 13.44% |
| Return on assets (ROA) | 9.09% | 8.81% | 8.00% | 8.15% | 8.62% | 9.63% | 10.67% | 11.94% | 12.79% | 12.30% | 12.17% | 11.33% | 10.65% | 8.60% | 8.23% | 6.39% | 6.15% | 6.37% | 7.02% | 8.80% |
| Return on total capital | 25.28% | 25.09% | 24.19% | 24.71% | 26.71% | 28.29% | 31.35% | 35.76% | 39.13% | 37.88% | 37.79% | 36.47% | 34.96% | 30.22% | 27.37% | 22.81% | 22.59% | 24.23% | 26.72% | 31.85% |
| Return on equity (ROE) | 18.24% | 18.09% | 17.40% | 17.91% | 19.14% | 20.26% | 22.48% | 25.58% | 27.90% | 25.85% | 25.60% | 24.39% | 23.14% | 20.57% | 18.33% | 14.48% | 14.09% | 14.66% | 16.29% | 20.52% |
Packaging Corp of America's profitability ratios have shown fluctuations over the analyzed period. The Operating Return on Assets (Operating ROA) increased from 13.44% as of March 31, 2020, to a peak of 15.84% as of December 31, 2021, and then decreased to 12.17% by the end of December 31, 2023.
Similarly, the Return on Assets (ROA) followed a similar trend, reaching a peak of 12.79% as of December 31, 2022, before declining to 9.09% by the end of December 31, 2024.
The Return on Total Capital peaked at 39.13% as of December 31, 2022, before decreasing to 25.28% by the end of December 31, 2024.
Finally, the Return on Equity (ROE) reached its highest point of 27.90% as of December 31, 2022, and then fell to 18.24% by the end of December 31, 2024.
These ratios indicate the company's ability to generate profits relative to its assets, capital, and equity. The declining trend in some ratios towards the end of the period may suggest potential challenges in maintaining profitability levels or efficiently utilizing resources.