Stepan Company (SCL)
Net profit margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 40,204 | 52,231 | 79,044 | 118,486 | 147,153 | 153,314 | 150,850 | 142,002 | 137,804 | 105,641 | 101,889 | 94,318 | 81,252 | 118,458 | 111,179 | 105,690 | 103,129 | 105,048 | 100,913 | 104,149 |
| Revenue (ttm) | US$ in thousands | 2,306,119 | 2,409,124 | 2,565,319 | 2,735,064 | 2,759,510 | 2,746,863 | 2,632,121 | 2,477,612 | 2,339,459 | 2,223,132 | 2,085,032 | 1,950,387 | 1,863,537 | 1,821,473 | 1,808,473 | 1,819,863 | 1,859,078 | 1,880,747 | 1,936,514 | 2,504,002 |
| Net profit margin | 1.74% | 2.17% | 3.08% | 4.33% | 5.33% | 5.58% | 5.73% | 5.73% | 5.89% | 4.75% | 4.89% | 4.84% | 4.36% | 6.50% | 6.15% | 5.81% | 5.55% | 5.59% | 5.21% | 4.16% |
December 31, 2023 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $40,204K ÷ $2,306,119K
= 1.74%
From the provided data, we observe that Stepan Co.'s net profit margin has shown a decreasing trend over the past year. In Q4 2022, the net profit margin was at its highest at 5.31%, gradually declining to 1.73% in Q4 2023. This downward trend may indicate that the company's profitability has been decreasing, potentially due to factors such as increasing costs or declining revenues.
The net profit margin represents the percentage of revenue that translates into net income after accounting for all expenses. A decreasing net profit margin suggests that the company is retaining a smaller portion of its revenue as profit.
It is essential for Stepan Co. to closely monitor its expenses and revenues to improve its net profit margin and overall financial performance. Management may need to implement cost-control measures, increase efficiency, or explore ways to boost revenues to reverse this declining trend and enhance profitability in the future.
Peer comparison
Dec 31, 2023