Sotera Health Co (SHC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 54.73% | 55.00% | 55.50% | 55.68% | 54.22% |
| Operating profit margin | 27.05% | 26.37% | 24.74% | 27.56% | 25.18% |
| Pretax margin | 10.35% | 10.10% | -24.22% | 18.86% | -4.75% |
| Net profit margin | 4.03% | 4.90% | -23.27% | 12.55% | -4.58% |
Sotera Health Co's gross profit margin has shown a relatively stable trend over the past five years, ranging from 54.22% in 2020 to 55.68% in 2021, and then hovering around the 55% mark in subsequent years. This indicates that the company has been effectively managing its production costs and generating a consistent level of gross profit from its operations.
The operating profit margin, on the other hand, has displayed a more varied pattern, with an increase from 25.18% in 2020 to 27.56% in 2021, a slight decrease in 2022, followed by an upward trend in 2023 and 2024. This suggests that despite fluctuations, Sotera Health Co has managed to improve its operational efficiency and control its operating expenses to enhance profitability.
The pretax margin highlights a significant positive turnaround from -4.75% in 2020 to 18.86% in 2021, indicating a strong recovery in the company's overall profitability before taxes. Despite a sharp decline to -24.22% in 2022, Sotera Health Co rebounded with pretax margins of 10.10% in 2023 and 10.35% in 2024, signaling a more stable financial performance.
Finally, the net profit margin, which reflects the company's bottom line profitability, experienced a similar trajectory as the pretax margin. Sotera Health Co shifted from a negative net profit margin of -4.58% in 2020 to positive figures of 12.55% in 2021, but then dipped to -23.27% in 2022. Despite this setback, the company managed to recover with net profit margins of 4.90% in 2023 and 4.03% in 2024, indicating an overall improvement in profitability after addressing challenges in the previous year.
In conclusion, while Sotera Health Co has faced fluctuations in its profitability ratios over the years, the company has demonstrated resilience and effectiveness in managing its margins to drive sustainable financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.69% | 8.84% | 7.97% | 9.20% | 7.46% |
| Return on assets (ROA) | 1.45% | 1.64% | -7.49% | 4.19% | -1.36% |
| Return on total capital | 68.80% | 58.56% | -43.04% | 42.84% | 38.38% |
| Return on equity (ROE) | 10.96% | 11.58% | -66.69% | 19.94% | -8.25% |
Based on the provided data, Sotera Health Co's profitability ratios exhibit some fluctuations over the five-year period from December 31, 2020, to December 31, 2024.
1. Operating return on assets (Operating ROA) has shown an increasing trend from 7.46% in 2020 to 9.69% in 2024 with fluctuations in between.
2. Return on assets (ROA) has been volatile, starting at -1.36% in 2020, reaching a positive peak of 4.19% in 2021, dropping to a negative -7.49% in 2022, and then recovering to around 1.64% and 1.45% in 2023 and 2024, respectively.
3. Return on total capital has also been volatile, ranging from a high of 68.80% in 2024 to a low of -43.04% in 2022.
4. Return on equity (ROE) has also shown fluctuations, starting at -8.25% in 2020, reaching a peak of 19.94% in 2021, dropping to -66.69% in 2022, and then showing moderate improvements to around 11.58% and 10.96% in 2023 and 2024, respectively.
Overall, Sotera Health Co's profitability ratios have displayed mixed performance, with some improvement in operating profitability indicators like Operating ROA and steady but volatile performance in ROA and ROE. The company's return on total capital has shown significant swings, reflecting the impact of capital structure and investment decisions on overall profitability.