Stepan Company (SCL)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 12.04% | 11.58% | 12.72% | 14.31% | 15.48% | 16.11% | 15.80% | 15.99% | 16.92% | 18.95% | 20.46% | 21.19% | 20.59% | 19.74% | 18.80% | 18.37% | 18.27% | 17.52% | 17.34% | 13.29% |
| Operating profit margin | 2.54% | 2.91% | 4.10% | 6.03% | 7.51% | 7.85% | 7.64% | 7.27% | 7.30% | 5.69% | 6.17% | 5.98% | 5.51% | 8.54% | 7.80% | 7.56% | 6.85% | 7.14% | 6.89% | 5.50% |
| Pretax margin | 2.10% | 2.55% | 3.74% | 5.46% | 6.84% | 7.34% | 7.23% | 7.21% | 7.37% | 6.68% | 7.31% | 7.30% | 6.69% | 8.47% | 7.66% | 7.17% | 6.77% | 6.84% | 6.50% | 5.17% |
| 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% |
Stepan Co.'s profitability ratios have shown a declining trend over the quarters based on the gross profit margin, operating profit margin, pre-tax margin, and net profit margin. The gross profit margin has decreased from 15.40% in Q4 2022 to 11.94% in Q4 2023, indicating a decrease in the percentage of revenue remaining after deducting the cost of goods sold.
Similarly, the operating profit margin has also decreased over the quarters from 7.18% in Q4 2022 to 3.31% in Q4 2023, showcasing a reduction in the profitability of the company's core operations. This decline is also evident in the pre-tax margin and net profit margin, which show a consistent downward trend.
The net profit margin, which represents the percentage of revenue that translates into net income after all expenses, has decreased from 5.31% in Q4 2022 to 1.73% in Q4 2023. This suggests that the company's expenses have been relatively high compared to its revenues, impacting its bottom line profitability negatively.
Overall, the declining trend in these profitability ratios raises concerns about Stepan Co.'s ability to generate profits efficiently and effectively manage its expenses. Investors and stakeholders may need to closely monitor the company's financial performance and assess potential strategies for improving profitability in the future.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.48% | 3.00% | 4.33% | 6.75% | 8.52% | 9.23% | 8.79% | 7.93% | 8.27% | 6.46% | 6.81% | 6.38% | 5.86% | 9.61% | 9.14% | 9.13% | 8.06% | 8.84% | 8.72% | 9.02% |
| Return on assets (ROA) | 1.70% | 2.24% | 3.25% | 4.84% | 6.05% | 6.56% | 6.59% | 6.25% | 6.67% | 5.40% | 5.40% | 5.16% | 4.64% | 7.32% | 7.20% | 7.02% | 6.53% | 6.92% | 6.60% | 6.82% |
| Return on total capital | 3.62% | 4.31% | 6.36% | 10.04% | 12.79% | 13.50% | 13.33% | 11.90% | 12.22% | 9.80% | 10.32% | 10.02% | 8.94% | 14.03% | 13.04% | 12.91% | 11.67% | 12.64% | 12.52% | 12.86% |
| Return on equity (ROE) | 3.30% | 4.34% | 6.51% | 9.96% | 12.62% | 13.56% | 13.40% | 12.72% | 12.83% | 9.99% | 9.71% | 9.41% | 8.23% | 12.63% | 12.39% | 12.19% | 11.56% | 12.30% | 11.77% | 12.53% |
Stepan Co.'s profitability ratios have shown a general declining trend over the past few quarters.
Operating Return on Assets (Operating ROA) decreased from 9.06% in Q3 2022 to 3.26% in Q4 2023. This suggests that the company's operating income generated from its assets has decreased significantly.
Return on Assets (ROA) also declined from 6.56% in Q3 2022 to 1.70% in Q4 2023, indicating a decrease in the company's overall profitability in relation to its total assets.
Return on Total Capital decreased from 12.48% in Q3 2022 to 4.12% in Q4 2023, reflecting a decrease in the company's ability to generate returns from its total invested capital.
Return on Equity (ROE) saw a decline from 13.56% in Q3 2022 to 3.30% in Q4 2023, indicating a decrease in the company's ability to generate profits for its shareholders.
Overall, the declining trend in profitability ratios may indicate challenges or inefficiencies in Stepan Co.'s operations or economic factors impacting its financial performance. Further analysis of the company's financial statements and operational activities would be needed to identify the underlying reasons for the declining profitability ratios.