RPM International Inc (RPM)
Profitability ratios
Return on sales
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 41.38% | 41.10% | 37.87% | 36.27% | 39.39% |
| Operating profit margin | 12.28% | 12.07% | 10.77% | 9.39% | 11.91% |
| Pretax margin | 10.75% | 10.74% | 8.95% | 9.05% | 10.95% |
| Net profit margin | 9.34% | 8.02% | 6.60% | 7.33% | 8.23% |
The profitability ratios of RPM International Inc over the period from May 31, 2021, to May 31, 2025, demonstrate a gradual improvement in the company's ability to generate profit relative to its sales and costs.
Gross profit margin exhibited a slight decline from 39.39% in 2021 to a low of 36.27% in 2022. However, it showed a consistent upward trend thereafter, reaching 37.87% in 2023, and further increasing to 41.10% in 2024 and 41.38% in 2025. This pattern suggests an initial compression of gross profitability, followed by a recovery and expansion, likely indicating improvements in cost management or pricing strategies.
The operating profit margin experienced a dip from 11.91% in 2021 to 9.39% in 2022, reflecting increased operating costs or pricing pressures. Nonetheless, it recovered in subsequent years, rising to 10.77% in 2023, then to 12.07% in 2024, and reaching 12.28% in 2025. The upward trend in operating margin indicates effective management of operating expenses and potential operational efficiencies gained over time.
Pretax margin showed a decline from 10.95% in 2021 to 8.95% in 2023, with a slight resurgence to 10.74% in 2024 and 10.75% in 2025. The fluctuations suggest variability in non-operating income or expenses, but the overall trend in recent years points toward a stabilization at a higher profitability level.
The net profit margin declined from 8.23% in 2021 to 6.60% in 2023, reflecting challenges in translating operating profits into net income, possibly due to increased tax or interest expenses. However, the margin improved afterward, reaching 8.02% in 2024 and further ascending to 9.34% in 2025. The positive trend in net margin indicates enhanced profitability after prior pressures, culminating in higher bottom-line returns relative to sales.
Overall, RPM International Inc experienced some initial compression in its profitability ratios in 2022 but demonstrated resilience and subsequent recovery. The consistent upward trend in gross, operating, pretax, and net profit margins from 2023 onward suggests effective strategic initiatives, operational improvements, and cost efficiencies contributing to enhanced profitability in recent years.
Return on investment
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.64% | 13.44% | 11.52% | 9.39% | 11.63% |
| Return on assets (ROA) | 8.86% | 8.93% | 7.06% | 7.33% | 8.04% |
| Return on total capital | 30.82% | 36.08% | 35.89% | 35.04% | 43.30% |
| Return on equity (ROE) | 23.87% | 23.43% | 22.36% | 24.79% | 28.87% |
The profitability ratios of RPM International Inc. over the period from May 2021 to May 2025 reveal a pattern of fluctuating but generally stable financial performance.
The Operating Return on Assets (Operating ROA) experienced a decline from 11.63% in May 2021 to a low of 9.39% in May 2022, followed by a recovery to 11.52% in May 2023. This upward trend continued into May 2024, with an increase to 13.44%, before slightly decreasing to 11.64% in May 2025. The fluctuations suggest periods of operational efficiency changes, with recent performance indicating improved operational profitability relative to assets.
The Return on Assets (ROA), which accounts for overall profitability including all assets, showed a decline from 8.04% in May 2021 to 7.33% in May 2022, then further dipping to 7.06% in May 2023. Subsequently, ROA increased to 8.93% in May 2024 and remained relatively steady at 8.86% in May 2025, signifying a modest recovery and stabilization in the company's ability to generate net income from its assets.
Return on Total Capital demonstrated a downward trend from 43.30% in May 2021 to 35.04% in May 2022, with a slight increase to 35.89% in May 2023. The ratio further stabilized around 36.08% in May 2024 before declining again to 30.82% in May 2025, indicating a reduction in the efficiency of capital use in generating returns over time.
Return on Equity (ROE) followed a similar pattern, decreasing from 28.87% in May 2021 to 24.79% in May 2022, and further to 22.36% in May 2023. Thereafter, ROE experienced a marginal increase to 23.43% in May 2024 and advanced slightly to 23.87% in May 2025, suggesting a mild improvement in shareholders' returns despite overall fluctuations.
Overall, RPM International Inc.'s profitability ratios depict periods of volatility with a tendency towards recovery in recent years, particularly evident in operating profitability and net income relative to assets and equity. The data indicates the company’s ability to manage operational performance and capital effectiveness has experienced some challenges but has shown signs of stabilization and potential improvement in recent periods.