Sotera Health Co (SHC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Gross profit margin | 55.00% | 55.50% | 55.68% |
| Operating profit margin | 26.37% | 24.74% | 27.56% |
| Pretax margin | 10.10% | -24.22% | 18.84% |
| Net profit margin | 4.90% | -23.27% | 12.55% |
The profitability ratios of Sotera Health Co over the past five years show a mix of performance trends.
1. Gross Profit Margin: Sotera Health Co has maintained a relatively stable gross profit margin over the period, ranging from 50.81% in 2019 to 55.68% in 2021. This indicates the company's ability to efficiently control production costs and generate profits from its core operations.
2. Operating Profit Margin: The operating profit margin has fluctuated slightly, with a peak of 27.56% in 2021 and a low of 24.33% in 2019. This metric measures the company's efficiency in managing operating expenses, and the overall trend suggests a generally healthy operational performance.
3. Pre-tax Margin: Sotera Health Co experienced significant fluctuations in its pre-tax margin, with negative values in 2020 and 2022. However, there was a substantial recovery in 2023, with the margin reaching 10.10%. This metric reflects the company's ability to generate profits before accounting for taxes and indicates recent improvements in profitability.
4. Net Profit Margin: The net profit margin also shows variability, with negative values in 2019, 2020, and 2022. However, there was a notable rebound in 2023, with a net profit margin of 4.90%. This ratio illustrates the company's ability to generate profits after accounting for all expenses and reflects recent efforts to enhance profitability.
In conclusion, while Sotera Health Co has displayed some fluctuations in profitability ratios over the past five years, there are signs of stability and improvement in recent years, particularly in 2023. Continued focus on cost management and operational efficiency could further enhance the company's profitability moving forward.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.84% | 7.97% | 9.20% |
| Return on assets (ROA) | 1.64% | -7.49% | 4.19% |
| Return on total capital | 10.37% | 11.84% | 11.02% |
| Return on equity (ROE) | 11.58% | -66.69% | 19.94% |
Sotera Health Co's profitability ratios demonstrate varied performance over the past five years.
The Operating return on assets (Operating ROA) has generally shown improvement from 7.34% in 2019 to 8.84% in 2023, indicating the company's efficiency in generating operating profits relative to its total assets. This growth suggests better utilization of assets to generate earnings over time.
Return on assets (ROA) has fluctuated considerably, with negative values in 2020 and 2022, indicating periods of net losses relative to total assets. However, there has been a positive trend from -0.81% in 2019 to 1.64% in 2023, suggesting some improvement in asset utilization to generate profits.
Return on total capital has shown relatively consistent performance, varying between 8.59% (2019) and 10.83% (2021). This ratio indicates the company's ability to generate returns on both debt and equity capital invested in the business, showcasing stable profitability relative to the total capital employed.
Return on equity (ROE) displays significant fluctuations, with negative values in 2020 and 2022, but a notable improvement in 2023 to 11.58%. ROE reflects the profitability generated from shareholder equity, and the recent increase indicates better profitability relative to the shareholders' investment in the company.
Overall, Sotera Health Co's profitability ratios exhibit a mix of trends, with improvements in certain ratios reflecting enhanced efficiency and profitability, albeit with some fluctuations in others over the analyzed period.