Sotera Health Co (SHC)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 55.00% | 54.39% | 54.17% | 54.65% | 55.50% | 55.29% | 55.50% | 55.66% | 55.68% |
| Operating profit margin | 26.37% | 23.50% | 22.53% | 23.11% | 24.74% | 25.63% | 26.48% | 27.60% | 27.56% |
| Pretax margin | 10.10% | -34.13% | -30.38% | -28.66% | -24.22% | 19.54% | 19.90% | 21.64% | 18.84% |
| Net profit margin | 4.90% | -30.99% | -27.48% | -26.47% | -23.27% | 12.30% | 12.82% | 14.30% | 12.55% |
Sotera Health Co's profitability ratios show fluctuations over the past eight quarters. The gross profit margin has been relatively stable, ranging between 54.17% and 55.50%. This indicates the company has been able to maintain a consistent level of profit after accounting for the cost of goods sold.
The operating profit margin has shown some variation, with a peak of 27.60% in Q1 2022 and a low of 22.53% in Q2 2023. This suggests that the company's operational efficiency has experienced some ups and downs during this period.
The pretax margin has fluctuated significantly, from negative figures in Q2 and Q3 2023 to positive values in previous quarters. This indicates that Sotera Health Co has faced challenges in generating income before accounting for taxes in the recent quarters.
Similarly, the net profit margin has shown volatility, with negative values in Q2 and Q3 2023. This suggests that the company's overall profitability, after accounting for all expenses including taxes, has been impacted by certain factors during this period.
Overall, Sotera Health Co's profitability ratios reflect a mixed performance, with signs of both stability and fluctuation in different quarters. Further analysis would be needed to identify the specific factors influencing these variations and assess the company's long-term profitability prospects.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.84% | 7.67% | 7.15% | 6.68% | 7.97% | 9.06% | 9.05% | 9.30% | 9.20% |
| Return on assets (ROA) | 1.64% | -10.11% | -8.72% | -7.66% | -7.49% | 4.35% | 4.38% | 4.82% | 4.19% |
| Return on total capital | 10.37% | 8.95% | 8.33% | 8.83% | 11.84% | 41.96% | 40.42% | 11.06% | 11.02% |
| Return on equity (ROE) | 11.58% | -81.34% | -64.12% | -72.38% | -66.69% | 20.13% | 19.58% | 21.29% | 19.94% |
Profitability ratios provide insights into a company's ability to generate profits relative to its assets and capital. Based on the data provided for Sotera Health Co, the following key points can be observed:
1. Operating return on assets (Operating ROA) has been relatively stable over the quarters, ranging from 6.68% to 8.84%. This ratio indicates that the company is efficiently generating operating income in relation to its total assets.
2. Return on assets (ROA) shows significant fluctuations with a range from -10.09% to 4.35%. The negative percentages in Q3 and Q2 of 2023 are particularly concerning as they indicate that the company experienced losses relative to its assets during those periods.
3. Return on total capital has been relatively stable, ranging from 8.10% to 10.55%. This ratio demonstrates the company's ability to generate returns for both shareholders and debt holders on its total capital employed.
4. Return on equity (ROE) has shown a similar trend to ROA with significant fluctuations. Particularly, the negative ROE values in Q3 and Q2 of 2023 raise red flags about the company's ability to generate returns for its shareholders.
In conclusion, while Sotera Health Co has shown stable performance in terms of Operating ROA and Return on total capital, the fluctuations and negative values in ROA and ROE ratios indicate inconsistencies in the company's profitability and potential challenges in generating returns for its assets and equity holders. Further analysis of the underlying factors contributing to these fluctuations would be necessary to fully understand the company's profitability trends.