Stepan Company (SCL)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 40,204 | 147,153 | 137,804 | 126,770 | 103,129 |
| Revenue | US$ in thousands | 2,306,120 | 2,759,510 | 2,339,460 | 1,863,540 | 1,847,220 |
| Net profit margin | 1.74% | 5.33% | 5.89% | 6.80% | 5.58% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $40,204K ÷ $2,306,120K
= 1.74%
The net profit margin of Stepan Co. has shown a declining trend over the past five years. In 2023, the net profit margin dropped to 1.73%, significantly lower than the levels observed in the previous years. This decrease indicates that Stepan Co. is generating less profit relative to its revenue in 2023 compared to earlier years. The decreasing trend in net profit margin may suggest that the company is facing challenges in managing its costs efficiently or experiencing pressure on its pricing strategies. Further investigation and analysis of the company's financial performance and operational efficiency are warranted to understand the reasons behind this declining profitability trend.
Peer comparison
Dec 31, 2023