RPM International Inc (RPM)
Profitability ratios
Return on sales
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 41.38% | 41.09% | 41.37% | 41.45% | 41.10% | 40.30% | 39.39% | 38.61% | 37.87% | 37.53% | 37.41% | 36.69% | 36.27% | 36.92% | 37.46% | 38.45% | 39.39% | 38.92% | 38.92% | 38.50% |
| Operating profit margin | 12.21% | 12.12% | 12.44% | 12.40% | 12.11% | 11.67% | 11.56% | 11.21% | 10.84% | 10.90% | 10.79% | 9.96% | 9.12% | 8.89% | 9.24% | 10.50% | 12.02% | 11.97% | 11.53% | 10.64% |
| Pretax margin | 10.75% | 10.74% | 11.25% | 11.10% | 10.74% | 10.28% | 9.73% | 9.45% | 8.95% | 9.20% | 9.28% | 9.31% | 9.05% | 9.11% | 9.59% | 9.89% | 10.95% | 10.50% | 9.98% | 8.98% |
| Net profit margin | 9.34% | 8.82% | 8.89% | 8.43% | 8.02% | 7.61% | 7.15% | 6.96% | 6.60% | 7.29% | 7.45% | 7.52% | 7.33% | 6.94% | 7.20% | 7.42% | 8.23% | 7.83% | 7.50% | 6.72% |
The profitability ratios for RPM International Inc. over the period from August 2020 to May 2025 depict a generally positive trend characterized by gradual improvements in key margins, indicating enhanced efficiency and profitability.
Gross Profit Margin:
The gross profit margin demonstrates a steady upward trajectory, beginning at 38.50% in August 2020 and increasing to 41.38% by May 2025. Despite minor fluctuations, the overall trend suggests that RPM has been successful in managing its cost of goods sold relative to sales, resulting in increased efficiency in production or procurement. The margin expansion particularly accelerates after a period of slight decline in late 2021 and early 2022, reaching its peak at over 41% in early 2025.
Operating Profit Margin:
Operating profit margins exhibit a positive trend, rising from 10.64% in August 2020 to approximately 12.21% in May 2025. The margins show some fluctuation, notably dipping to 9.24% in November 2021 but recovering thereafter. The upward movement in recent periods indicates an improved ability to control operating expenses relative to revenue, contributing to higher operating profitability.
Pretax Margin:
The pretax margin also showcases an increasing pattern, progressing from 8.98% in August 2020 to approximately 10.75% in May 2025. The margin experienced minor declines during 2021 but generally trended upward subsequently, suggesting better pretax profit generation relative to sales and possibly more favorable cost management or operational efficiency enhancements.
Net Profit Margin:
Net profit margins have demonstrated a consistent improvement, rising from 6.72% in August 2020 to 9.34% in May 2025. Despite some volatility, especially noted with a decline to 6.60% in May 2023, the overall trend reflects enhanced bottom-line profitability. The continued increase in net margins indicates effective expense management, favorable tax policies, or improvements in overall operational performance leading to higher net income relative to sales.
Summary:
Collectively, the data indicates that RPM International Inc. has experienced a consistent improvement in profitability ratios, driven by gains in gross, operating, pretax, and net profit margins. These trends suggest successful initiatives in cost control, operational efficiency, and revenue management, positioning the company for sustained profitability growth over the analyzed period.
Return on investment
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.57% | 13.36% | 13.67% | 13.59% | 13.49% | 13.43% | 12.97% | 12.25% | 11.60% | 11.91% | 11.25% | 10.23% | 9.12% | 9.08% | 9.32% | 10.47% | 11.74% | 12.03% | 11.40% | 10.54% |
| Return on assets (ROA) | 8.86% | 9.72% | 9.77% | 9.25% | 8.93% | 8.76% | 8.03% | 7.61% | 7.06% | 7.96% | 7.77% | 7.73% | 7.33% | 7.09% | 7.26% | 7.41% | 8.04% | 7.87% | 7.42% | 6.65% |
| Return on total capital | 21.31% | 32.96% | 34.23% | 34.71% | 36.08% | 37.57% | 36.23% | 36.48% | 36.91% | 38.51% | 37.03% | 36.00% | 33.13% | 34.67% | 34.60% | 37.52% | 42.02% | 45.74% | 44.69% | 44.18% |
| Return on equity (ROE) | 23.87% | 24.06% | 24.03% | 23.21% | 23.43% | 23.83% | 22.24% | 22.39% | 22.36% | 25.64% | 25.47% | 26.35% | 24.79% | 24.45% | 24.72% | 25.53% | 28.87% | 29.45% | 27.75% | 26.13% |
The profitability ratios of RPM International Inc. demonstrate a generally positive and increasing trend over the analyzed period, reflecting an improvement in the company's ability to generate profits relative to its assets, capital, and equity.
Operating Return on Assets (Operating ROA):
Starting at 10.54% on August 31, 2020, the operating ROA has exhibited a consistent upward trajectory, reaching 13.67% by November 30, 2024. This ratio underscores an enhancement in operational efficiency, indicating that RPM is increasingly effective in generating earnings from its operating assets. Notably, the ratio has shown steady growth in the recent periods, with slight accelerations, such as reaching 12.97% in late 2023 and further increasing to 13.43% in early 2024, suggesting better operational leverage or improved margins.
Return on Assets (ROA):
The ROA, which accounts for all assets including non-operational items, has also displayed an upward trend from 6.65% on August 31, 2020, to a high of 9.77% on November 30, 2024, before a minor decline to 8.86% by May 2025. This indicates an overall enhancement in the company's efficiency in utilizing total assets to generate net income, with periods of marginal fluctuation reflecting varying levels of profitability.
Return on Total Capital:
This metric, reflecting the efficiency in generating returns from both debt and equity capital, ranged from a peak of approximately 45.74% in February 2021 to a low of 21.31% in May 2025. The noticeable decline towards the latter part of the period suggests increased capital deployment without proportionate gains in profitability or changes in capital structure, impacting overall return metrics.
Return on Equity (ROE):
ROE experienced fluctuations, initially rising from 26.13% (August 2020) to a peak of 29.45% (February 2021), but then generally declining to 22.24% in November 2023. A slight recovery was observed toward early 2024, reaching 24.03%, and remaining relatively stable thereafter. This indicates that while the company maintained relatively strong equity returns, recent periods have seen compression possibly due to increased equity base, operational challenges, or shifting profit margins.
Summary:
The analysis of RPM International Inc.'s profitability ratios reveals a pattern of improving operational efficiency over the years, particularly marked by rising operating ROA and ROA figures. However, returns on total capital and equity have shown signs of variability and decline in the later periods, potentially signaling increased capital costs or market challenges. Overall, the trend points toward a healthier profitability profile with ongoing improvements, yet with some signs of pressure on capital efficiency and shareholder returns in recent periods.