Packaging Corp of America (PKG)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 22.01% | 22.43% | 23.23% | 24.21% | 25.00% | 25.89% | 26.21% | 25.63% | 25.04% | 23.24% | 21.90% | 21.15% | 20.84% | 21.58% | 22.39% | 23.16% | 23.90% | 24.42% | 24.58% | 19.47% |
| Operating profit margin | 13.93% | 14.21% | 15.16% | 16.25% | 16.99% | 17.92% | 18.12% | 17.40% | 16.60% | 14.73% | 13.32% | 11.31% | 11.02% | 11.70% | 12.41% | 14.40% | 15.32% | 16.01% | 16.33% | 12.86% |
| Pretax margin | 13.14% | 13.44% | 14.42% | 15.56% | 16.32% | 16.48% | 16.58% | 15.73% | 14.82% | 13.61% | 12.09% | 9.95% | 9.63% | 9.73% | 10.45% | 12.51% | 13.33% | 14.62% | 14.94% | 11.76% |
| Net profit margin | 9.92% | 10.16% | 10.92% | 11.76% | 12.31% | 12.46% | 12.51% | 11.88% | 11.24% | 10.25% | 9.10% | 7.30% | 7.01% | 7.20% | 7.75% | 9.50% | 10.13% | 11.08% | 11.33% | 8.93% |
Packaging Corp Of America's profitability ratios have shown a declining trend over the past quarters. The gross profit margin has decreased from 24.66% in Q4 2022 to 21.77% in Q4 2023, indicating a decrease in the company's ability to generate profits after accounting for the cost of goods sold. Similarly, the operating profit margin has also declined from 17.48% in Q4 2022 to 14.33% in Q4 2023, demonstrating a reduction in profitability from core business operations.
The pretax margin has decreased from 16.10% in Q4 2022 to 13.00% in Q4 2023, indicating a decline in the company's ability to generate profits before accounting for taxes. The net profit margin has also shown a decreasing trend, dropping from 12.05% in Q4 2022 to 9.73% in Q4 2023, which reflects the company's profitability after all expenses, including taxes, have been deducted.
Overall, Packaging Corp Of America's profitability ratios suggest a downward trajectory in the company's ability to generate profits efficiently and effectively. Management may need to assess and address the factors leading to this declining trend to ensure sustainable profitability in the future.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.39% | 13.47% | 14.84% | 16.58% | 17.75% | 17.84% | 17.75% | 16.71% | 15.84% | 12.46% | 12.14% | 9.98% | 9.74% | 10.44% | 11.32% | 13.44% | 14.56% | 15.37% | 16.13% | 16.31% |
| Return on assets (ROA) | 8.81% | 9.63% | 10.69% | 12.00% | 12.87% | 12.40% | 12.26% | 11.41% | 10.73% | 8.67% | 8.29% | 6.44% | 6.20% | 6.43% | 7.07% | 8.86% | 9.62% | 10.64% | 11.19% | 11.33% |
| Return on total capital | 16.62% | 18.48% | 19.03% | 21.42% | 23.13% | 23.09% | 23.00% | 21.75% | 20.42% | 17.68% | 15.73% | 12.96% | 12.64% | 13.54% | 14.67% | 17.55% | 18.99% | 20.02% | 21.10% | 21.41% |
| Return on equity (ROE) | 19.14% | 20.26% | 22.53% | 25.70% | 28.08% | 26.06% | 25.80% | 24.57% | 23.31% | 20.73% | 18.48% | 14.58% | 14.20% | 14.78% | 16.42% | 20.68% | 22.68% | 25.20% | 27.10% | 28.08% |
Packaging Corp Of America's profitability ratios indicate a generally positive trend over the past eight quarters.
The Operating Return on Assets (Operating ROA) has shown a consistent decline from 18.52% in Q4 2022 to 12.88% in Q4 2023. This may suggest a decrease in the efficiency of the company's operations in generating profits from its assets.
The Return on Assets (ROA) has also followed a similar trend, decreasing from 12.77% in Q4 2022 to 8.74% in Q4 2023. This indicates a decline in the company's ability to generate profits relative to its total assets.
On the other hand, the Return on Total Capital has shown a consistent increase from 24.08% in Q4 2022 to 16.25% in Q4 2023, suggesting that the company has been able to generate higher returns on its total invested capital.
The Return on Equity (ROE) has displayed a fluctuating pattern but has generally trended upwards, indicating an improvement in the company's ability to generate profits for its shareholders. From 24.39% in Q1 2022, ROE increased to 18.99% in Q4 2023.
Overall, while there have been variations in the profitability ratios, Packaging Corp Of America has shown strength in generating returns on capital and equity, which may indicate effective management of resources and profitability optimization strategies.