Sealed Air Corporation (SEE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.90% | 31.42% | 30.38% | 32.82% | 32.66% |
| Operating profit margin | 13.75% | 16.75% | 16.28% | 16.07% | 12.07% |
| Pretax margin | 7.87% | 12.93% | 13.22% | 13.15% | 7.09% |
| Net profit margin | 6.22% | 8.71% | 9.16% | 10.26% | 5.49% |
Sealed Air Corp.'s profitability ratios have shown some fluctuations over the past five years. The gross profit margin, which indicates the percentage of revenue retained after accounting for the cost of goods sold, ranged between 29.90% and 32.82%. The declining trend from 32.66% in 2019 to 29.90% in 2023 suggests potential challenges in maintaining profitability at the gross level.
The operating profit margin, reflecting the company's ability to generate profits from its core operations, ranged from 12.95% to 16.85%. The decrease from 16.85% in 2022 to 14.93% in 2023 indicates a potential decline in operational efficiency or increased operating expenses.
The pretax margin, representing the proportion of earnings before taxes to total revenue, varied between 7.73% and 12.94%. The drop from 12.93% in 2022 to 7.83% in 2023 reflects a significant decrease in profitability before accounting for taxes.
The net profit margin, which shows the company's bottom line profitability after all expenses have been deducted, ranged from 5.48% to 10.25%. The decline from 8.71% in 2022 to 6.22% in 2023 indicates decreased net profitability, possibly due to higher taxes or other expenses.
Overall, Sealed Air Corp.'s profitability ratios demonstrate fluctuations over the years, signaling potential challenges in maintaining and growing profitability. Further analysis of the company's cost structure, revenue streams, and operational efficiency may be necessary to identify areas for improvement and ensure sustainable profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.48% | 15.20% | 14.46% | 12.95% | 10.03% |
| Return on assets (ROA) | 4.74% | 7.91% | 8.14% | 8.27% | 4.56% |
| Return on total capital | 122.02% | 242.56% | 327.84% | 415.10% | — |
| Return on equity (ROE) | 62.17% | 142.87% | 203.78% | 291.54% | — |
Sealed Air Corp.'s profitability ratios have shown fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has decreased from 15.30% in 2022 to 11.38% in 2023. This ratio measures the company's ability to generate operational profits from its total assets.
2. Return on assets (ROA) has also decreased over the same period, from 7.91% in 2022 to 4.74% in 2023. This ratio indicates the company's overall efficiency in generating profits from its assets.
3. Return on total capital has similarly shown a decreasing trend from 23.63% in 2022 to 15.64% in 2023. This ratio reflects the company's ability to generate returns for all of its capital providers, including both equity and debt holders.
4. Return on equity (ROE) has displayed significant fluctuations, with an absence of data for 2020 and a drastic decrease from 142.87% in 2022 to 62.17% in 2023. ROE measures the company's ability to generate profit from shareholders' equity.
Overall, the declining trend in profitability ratios suggests a potential decrease in the company's efficiency and effectiveness in generating profits relative to its investments and capital providers. Further analysis and investigation into the underlying factors driving these trends may be necessary to assess the company's financial health and performance accurately.