Pilgrims Pride Corp (PPC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.92% | 6.54% | 10.48% | 9.33% | 6.99% |
| Operating profit margin | 8.41% | 3.05% | 6.80% | 1.44% | 2.05% |
| Pretax margin | 7.89% | 2.13% | 5.93% | 0.63% | 1.35% |
| Net profit margin | 6.07% | 1.88% | 4.31% | 0.21% | 0.79% |
Pilgrims Pride Corp's profitability ratios have shown fluctuating trends over the past five years. The gross profit margin has demonstrated an upward trajectory, increasing from 6.99% in December 2020 to 12.92% in December 2024. This indicates the company's ability to control production costs and generate more profitable revenue.
In terms of operating profit margin, there was a significant improvement from 1.44% in December 2021 to 8.41% in December 2024. This suggests that Pilgrims Pride Corp has been able to enhance its operational efficiency and effectively manage its expenses to increase profitability.
Furthermore, the pretax margin has also exhibited a positive trend, rising from 0.63% in December 2021 to 7.89% in December 2024. This indicates the company's ability to generate higher earnings before taxes relative to its total revenue.
Lastly, the net profit margin, which reflects the company's bottom line profitability, has shown a similar pattern of improvement, increasing from 0.21% in December 2021 to 6.07% in December 2024. This demonstrates Pilgrims Pride Corp's success in controlling its overall costs and increasing its net income relative to its revenue.
Overall, Pilgrims Pride Corp has made notable progress in improving its profitability ratios over the years, indicating stronger financial performance and efficiency in managing its operations.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.14% | 5.32% | 12.71% | 2.37% | 3.28% |
| Return on assets (ROA) | 10.20% | 3.28% | 8.06% | 0.35% | 1.27% |
| Return on total capital | 21.12% | 8.49% | 41.45% | 9.23% | 11.22% |
| Return on equity (ROE) | 25.63% | 9.65% | 26.26% | 1.20% | 3.70% |
Pilgrims Pride Corp's profitability ratios show fluctuations over the years. The Operating Return on Assets (Operating ROA) ranged from 2.37% in 2021 to a peak of 14.14% in 2024, indicating varying operational efficiency in generating profits from its assets. The Return on Assets (ROA) also varied from 0.35% in 2021 to a high of 10.20% in 2024, reflecting the company's ability to generate profits relative to its total assets.
Similarly, the Return on Total Capital ranged from 9.23% in 2021 to 41.45% in 2022, showing significant fluctuations in the company's profitability in relation to its total capital employed. The Return on Equity (ROE) fluctuated from 1.20% in 2021 to a peak of 26.26% in 2022, indicating varying returns for the shareholders over the years.
Overall, Pilgrims Pride Corp's profitability ratios show variability, with some years demonstrating strong profitability metrics while others showing lower returns. These fluctuations suggest the company's financial performance has been inconsistent and may require further analysis to understand the underlying reasons for the changes in profitability ratios.