Stepan Company (SCL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 12.49% | 12.89% | 12.60% | 12.32% | 11.94% | 11.52% | 12.65% | 14.24% | 15.40% | 16.06% | 15.76% | 15.95% | 16.87% | 18.89% | 20.38% | 21.11% | 20.52% | 19.76% | 18.81% | 18.38% |
| Operating profit margin | 3.31% | 3.34% | 3.11% | 3.04% | 2.87% | 1.89% | 2.22% | 4.26% | 4.86% | 6.08% | 6.69% | 6.27% | 7.28% | 8.75% | 9.44% | 9.47% | 9.17% | 8.54% | 7.81% | 7.56% |
| Pretax margin | 2.77% | 2.48% | 2.22% | 2.15% | 2.08% | 2.54% | 3.72% | 5.43% | 6.80% | 7.32% | 7.22% | 7.20% | 7.35% | 8.73% | 9.50% | 9.64% | 9.15% | 8.49% | 7.67% | 7.17% |
| Net profit margin | 2.31% | 2.10% | 1.58% | 1.71% | 1.73% | 2.16% | 3.07% | 4.31% | 5.31% | 5.56% | 5.71% | 5.72% | 5.87% | 6.78% | 7.04% | 7.14% | 6.78% | 6.51% | 6.15% | 5.81% |
Based on the provided data, Stepan Company's profitability ratios have shown varying trends over the period from March 31, 2020, to December 31, 2024.
1. Gross Profit Margin: The gross profit margin, which indicates the percentage of revenue retained after accounting for the cost of goods sold, fluctuated between 11.52% to 21.11% during this period. The trend in recent quarters shows a decline to 12.49% by December 31, 2024, indicating potential challenges in managing production costs relative to sales.
2. Operating Profit Margin: The operating profit margin, representing the percentage of revenue remaining after deducting operating expenses, declined from 9.44% on June 30, 2021, to 3.31% by December 31, 2024. This decreasing trend suggests that the company may be facing challenges in controlling its operating costs efficiently.
3. Pretax Margin: The pretax margin, which shows the percentage of revenue remaining after accounting for all operating expenses without considering taxes, fluctuated between 2.08% to 9.64% during this period. The trend indicates a decline in profitability over time, reaching 2.77% by December 31, 2024.
4. Net Profit Margin: The net profit margin, reflecting the percentage of revenue left as net income after accounting for all expenses and taxes, decreased from 7.14% on March 31, 2021, to 2.31% by December 31, 2024. This downward trend in net profitability highlights challenges in generating bottom-line profits relative to revenue.
Overall, the declining trend in profitability margins over time suggests that Stepan Company may be experiencing challenges in managing costs, controlling expenses, and maintaining overall profitability levels in the face of changing market conditions or internal operational factors.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.14% | 3.02% | 2.92% | 2.85% | 2.83% | 1.96% | 2.36% | 4.79% | 5.54% | 7.17% | 7.72% | 6.85% | 8.27% | 9.98% | 10.46% | 10.14% | 9.79% | 9.61% | 9.14% | 9.13% |
| Return on assets (ROA) | 2.19% | 1.90% | 1.48% | 1.60% | 1.70% | 2.24% | 3.25% | 4.84% | 6.05% | 6.56% | 6.59% | 6.25% | 6.67% | 7.73% | 7.81% | 7.65% | 7.23% | 7.32% | 7.20% | 7.02% |
| Return on total capital | 6.95% | 5.87% | 6.05% | 5.87% | 5.97% | 6.36% | 8.74% | 14.04% | 17.95% | 19.51% | 18.31% | 16.48% | 16.24% | 17.32% | 17.16% | 16.74% | 15.59% | 15.20% | 14.91% | 15.06% |
| Return on equity (ROE) | 4.31% | 3.76% | 2.92% | 3.13% | 3.30% | 4.34% | 6.51% | 9.96% | 12.62% | 13.56% | 13.40% | 12.72% | 12.83% | 14.30% | 14.05% | 13.95% | 12.85% | 12.63% | 12.39% | 12.19% |
Stepping through Stepan Company's profitability ratios, we can observe the following trends:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA showed a positive trend from March 31, 2020, to June 30, 2021, indicating an improvement in the company's ability to generate operating profit from its assets.
- However, there was a decline in Operating ROA from June 30, 2021, to December 31, 2024, suggesting a decrease in efficiency in generating operating profit relative to the total assets.
2. Return on Assets (ROA):
- The ROA exhibited a relatively stable performance from March 31, 2020, to September 30, 2021, with slight fluctuations.
- A significant decrease in ROA is observed from March 31, 2022, to December 31, 2024, indicating a decline in the company's overall profitability relative to its total assets.
3. Return on Total Capital:
- The Return on Total Capital increased steadily from March 31, 2020, to September 30, 2022, showing an improvement in the company's ability to generate returns on its invested capital.
- However, there was a notable decline in Return on Total Capital from March 31, 2023, to December 31, 2024, suggesting a decrease in the company's efficiency in utilizing its total capital to generate returns.
4. Return on Equity (ROE):
- The ROE displayed a consistent performance from March 31, 2020, to September 30, 2022, with moderate fluctuations.
- A significant decrease in ROE is observed from March 31, 2023, to December 31, 2024, indicating a decline in the company's ability to generate returns for its shareholders relative to their equity stake.
Overall, the trends in Stepan Company's profitability ratios indicate varying levels of performance in utilizing assets, capital, and equity to generate profits over the periods analyzed. It is essential for investors and stakeholders to closely monitor these ratios to assess the company's overall financial health and profitability.