Stepan Company (SCL)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 50,370 | 40,204 | 147,153 | 137,804 | 126,770 |
| Revenue | US$ in thousands | 2,180,270 | 2,325,770 | 2,773,270 | 2,345,970 | 1,869,750 |
| Net profit margin | 2.31% | 1.73% | 5.31% | 5.87% | 6.78% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $50,370K ÷ $2,180,270K
= 2.31%
Stepan Company's net profit margin has exhibited a slight decrease over the past few years, declining from 6.78% as of December 31, 2020, to 2.31% by December 31, 2024. This downward trend suggests that the company's profitability in relation to its revenue has been eroding over time. The drop in net profit margin may indicate increased costs, lower revenue generation, or both, which could be attributed to various factors such as rising expenses, pricing pressures, or inefficiencies in operations. It is essential for Stepan Company to closely monitor its cost structure and revenue streams to maintain or improve its net profit margin in the future, ensuring sustainable profitability and financial health.
Peer comparison
Dec 31, 2024