PPG Industries Inc (PPG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 41.61% | 41.36% | 37.14% | 38.78% | 43.78% |
| Operating profit margin | 14.43% | 15.26% | 9.76% | 10.84% | 12.93% |
| Pretax margin | 11.69% | 9.58% | 7.82% | 10.80% | 9.85% |
| Net profit margin | 8.69% | 6.96% | 5.81% | 8.56% | 7.66% |
PPG Industries Inc's gross profit margin has shown a slight decrease over the period from 2020 to 2024, moving from 43.78% to 41.61%. This indicates a decline in the percentage of revenue retained after accounting for the cost of goods sold.
The operating profit margin has also experienced a downward trend, dropping from 12.93% in 2020 to 14.43% in 2024. This suggests that the company's operating expenses relative to revenue have slightly improved over the years.
In terms of pretax margin, there has been variability in performance, with the margin ranging from 7.82% in 2022 to 11.69% in 2024. This metric shows the company's ability to generate profits before accounting for taxes on its earnings.
The net profit margin, reflecting the company's bottom line profitability, has fluctuated within a narrower range compared to other margins, ranging from 5.81% in 2022 to 8.69% in 2024. This metric indicates the portion of revenue that ultimately translates into net income for PPG Industries Inc.
Overall, while there have been fluctuations in profitability margins, the company has managed to maintain reasonable levels of profitability over the years, with some improvements in operating and net profit margins towards the later years of the period analyzed.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.77% | 12.86% | 8.30% | 8.53% | 9.15% |
| Return on assets (ROA) | 7.09% | 5.87% | 4.95% | 6.74% | 5.42% |
| Return on total capital | 30.85% | 25.50% | 27.50% | 31.24% | 26.86% |
| Return on equity (ROE) | 20.29% | 16.22% | 15.56% | 22.89% | 18.61% |
PPG Industries Inc has shown a consistent performance in terms of profitability ratios over the past five years.
1. Operating return on assets (Operating ROA) has slightly decreased from 9.15% in December 2020 to 8.30% in December 2022 before experiencing a significant increase to 12.86% in December 2023 and then slightly decreasing to 11.77% in December 2024. This indicates that the company's operating income generated from its assets has fluctuated but generally has been positive.
2. Return on assets (ROA) has shown fluctuations as well, ranging from 4.95% in December 2022 to 7.09% in December 2024. Despite the variations, there has been an overall increasing trend in ROA over the period.
3. Return on total capital has ranged from 25.50% in December 2023 to 31.24% in December 2021, indicating that the company has been effective in generating returns on its total capital over the years.
4. Return on equity (ROE) has shown an increasing trend from 18.61% in December 2020 to 20.29% in December 2024. This indicates that shareholders' equity has been utilized efficiently to generate returns for the company.
Overall, PPG Industries Inc has demonstrated a strong profitability performance, with fluctuations in some ratios, but an increasing trend in others over the past five years.