Sealed Air Corporation (SEE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.14% | 29.90% | 31.42% | 30.38% | 32.82% |
| Operating profit margin | 13.65% | 13.75% | 16.75% | 16.28% | 16.07% |
| Pretax margin | 8.50% | 7.83% | 12.93% | 12.94% | 12.77% |
| Net profit margin | 4.91% | 6.22% | 8.71% | 9.16% | 10.26% |
Sealed Air Corporation's profitability ratios have experienced some fluctuations over the years.
The gross profit margin, which indicates the percentage of revenue remaining after deducting the cost of goods sold, decreased from 32.82% in December 2020 to 30.38% in December 2021 before slightly improving to 31.42% in December 2022. However, it then declined to 29.90% in December 2023 and recovered slightly to 30.14% in December 2024.
The operating profit margin, representing the percentage of revenue remaining after deducting operating expenses, was relatively stable around 16% from December 2020 to December 2022. However, it decreased to 13.75% in December 2023 and further to 13.65% in December 2024.
The pretax margin, showing the percentage of revenue remaining after deducting all expenses except taxes, decreased from 12.77% in December 2020 to 12.94% in December 2021 and then remained around 12-13% until a significant drop to 7.83% in December 2023. It slightly increased to 8.50% in December 2024.
The net profit margin, which reflects the percentage of revenue remaining after all expenses, including taxes, decreased from 10.26% in December 2020 to 9.16% in December 2021, then to 8.71% in December 2022, and further to 6.22% in December 2023. It experienced a notable decline to 4.91% in December 2024.
Overall, Sealed Air Corporation's profitability has shown some volatility, with decreasing trends in the later years, indicating potential challenges in managing costs and maintaining profitability levels.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.48% | 10.48% | 15.20% | 14.46% | 12.95% |
| Return on assets (ROA) | 3.77% | 4.74% | 7.91% | 8.14% | 8.27% |
| Return on total capital | 119.52% | 129.74% | 279.69% | 351.47% | 473.74% |
| Return on equity (ROE) | 42.39% | 62.17% | 142.87% | 203.78% | 291.54% |
Sealed Air Corporation's profitability ratios show varying performance over the years.
1. Operating return on assets (Operating ROA) has seen a positive trend from 12.95% in 2020 to 15.20% in 2022. However, there was a slight decline to 10.48% in both 2023 and 2024, indicating a decrease in the efficiency of utilizing assets to generate operating profits.
2. Return on assets (ROA) has shown a declining trend from 8.27% in 2020 to 3.77% in 2024. This indicates a decrease in overall profitability generated from the total assets employed in the business.
3. Return on total capital has also shown a declining trend from 473.74% in 2020 to 119.52% in 2024, indicating a decrease in the return generated on all capital invested in the company over the years.
4. Return on equity (ROE) has followed a similar trend, declining from 291.54% in 2020 to 42.39% in 2024. This indicates a decrease in the return generated for the shareholders' equity invested in the company.
Overall, Sealed Air Corporation's profitability ratios have shown a declining trend over the years, pointing towards potential issues in generating profits from assets, capital, and equity. Further analysis of the company's operations and financial management may be needed to address these declining profitability trends.