RPM International Inc (RPM)
Profitability ratios
Return on sales
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 41.81% | 38.55% | 36.78% | 39.97% | 38.71% |
| Operating profit margin | 8.34% | 7.17% | 6.84% | 8.12% | 4.83% |
| Pretax margin | 10.91% | 9.10% | 9.16% | 11.09% | 7.53% |
| Net profit margin | 8.16% | 6.72% | 7.43% | 8.35% | 5.63% |
RPM International Inc's profitability ratios have shown an improving trend over the past five years. The company's gross profit margin has generally increased, reaching 41.81% in 2024, indicating a strong ability to generate profits from sales after accounting for the cost of goods sold.
Similarly, the operating profit margin has also shown improvement, with a consistent upward trajectory, reaching 8.34% in 2024. This reveals that RPM has been able to effectively manage its operating expenses to generate profit from its core business activities.
The pretax margin, which reflects the company's ability to generate profit before taxes relative to its total revenue, has also shown a positive trend, reaching 10.91% in 2024. This indicates that RPM has been successful in optimizing its operational efficiency and controlling non-operating expenses.
Furthermore, the net profit margin, which represents the bottom line profitability of the company after all expenses have been deducted, has experienced a notable increase, reaching 8.16% in 2024. This suggests that RPM has been effective in managing its tax obligations and other costs, resulting in higher profitability for its shareholders.
Overall, the improving profitability ratios of RPM International Inc reflect a positive performance in terms of generating profits relative to sales and expenses, indicating effective cost management and operational efficiency.
Return on investment
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.13% | 7.53% | 6.75% | 7.81% | 4.64% |
| Return on assets (ROA) | 8.93% | 7.06% | 7.33% | 8.04% | 5.41% |
| Return on total capital | 36.03% | 35.84% | 34.99% | 43.25% | 40.25% |
| Return on equity (ROE) | 23.43% | 22.36% | 24.79% | 28.87% | 24.11% |
RPM International Inc's profitability ratios exhibit a positive trend over the past five years. The operating return on assets (Operating ROA) has increased steadily from 4.64% in 2020 to 9.13% in 2024, indicating the company's ability to generate operating income from its assets has been improving.
Similarly, the Return on assets (ROA) has shown an upward trajectory, reaching 8.93% in 2024, up from 5.41% in 2020. This metric reflects the overall efficiency of the company in utilizing its total assets to generate profits.
The Return on total capital has also demonstrated consistent growth, rising from 40.25% in 2020 to 36.03% in 2024. This indicates the company's ability to generate profits from both equity and debt capital invested in the business.
Moreover, the Return on equity (ROE) has shown a positive trend, increasing from 24.11% in 2020 to 23.43% in 2024. This metric reflects the company's profitability in relation to the shareholders' equity invested in the company.
Overall, the profitability ratios of RPM International Inc suggest that the company has been effectively utilizing its assets, capital, and equity to generate profits and create value for its shareholders over the analyzed period.