PPG Industries Inc (PPG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.68% | 9.95% | 12.44% | 13.00% | 13.86% |
| Operating profit margin | 14.76% | 11.64% | 12.84% | 15.30% | 15.00% |
| Pretax margin | 9.43% | 7.70% | 10.72% | 9.80% | 10.80% |
| Net profit margin | 7.01% | 5.85% | 8.51% | 7.69% | 8.21% |
The profitability ratios of PPG Industries, Inc. have shown varying trends over the past five years.
- Gross Profit Margin: PPG Industries' gross profit margin has been relatively stable, with a slight decrease in 2022 followed by an improvement in 2023. The company's ability to generate gross profit from its revenue has remained strong, ranging from 37.14% to 43.78% over the period.
- Operating Profit Margin: PPG's operating profit margin has shown an increasing trend from 2019 to 2021, followed by a slight decline in 2022 and a subsequent improvement in 2023. The company has shown efficiency in managing its operating expenses and generating operating profit, with margins ranging from 9.70% to 12.87% over the period.
- Pretax Margin: PPG Industries' pretax margin has fluctuated over the five-year period, with significant variations in 2021 and 2022. The company's ability to generate profit before taxes has ranged from 7.82% to 10.97% over the period, showing some volatility in its profitability.
- Net Profit Margin: The net profit margin of PPG has shown a similar trend to the pretax margin, with fluctuations over the five-year period. The company's ability to convert revenue into net profit has ranged from 5.81% to 8.56% during the period, indicating some variability in its bottom-line profitability.
Overall, PPG Industries, Inc. has demonstrated a decent level of profitability, as evidenced by its gross, operating, pretax, and net profit margins. However, the company has experienced some fluctuations in its profitability ratios over the past five years, which may warrant further analysis to understand the underlying factors driving these changes.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.36% | 9.84% | 10.17% | 10.78% | 12.82% |
| Return on assets (ROA) | 5.87% | 4.95% | 6.74% | 5.42% | 7.02% |
| Return on total capital | 14.40% | 11.59% | 15.04% | 13.70% | 17.99% |
| Return on equity (ROE) | 16.22% | 15.56% | 22.89% | 18.61% | 23.52% |
The profitability ratios of PPG Industries, Inc. show varying trends over the past five years.
1. Operating return on assets (Operating ROA) has been improving steadily, increasing from 8.25% in 2022 to 10.57% in 2023. This indicates that the company is generating more operating income per dollar of assets.
2. Return on assets (ROA) has fluctuated over the years, with a significant decrease in 2021 followed by a slight recovery in 2022 and a further increase in 2023. The company's ability to generate profit from its assets has shown some volatility.
3. Return on total capital has also shown an upward trend, increasing from 13.01% in 2022 to 16.70% in 2023. This suggests that the company is effectively utilizing its total capital to generate returns for its stakeholders.
4. Return on equity (ROE) has displayed fluctuations over the years, with a notable decrease in 2023 compared to the previous year. Despite the fluctuations, the company has generally maintained a healthy return on equity, indicating its ability to generate profit for its shareholders.
Overall, PPG Industries, Inc. has shown a mix of improving and fluctuating profitability ratios over the past five years. The company's ability to efficiently utilize its assets and capital to generate returns for its stakeholders has been evident, but some fluctuations in profitability metrics require further analysis to understand the underlying factors driving these changes.