Silgan Holdings Inc (SLGN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.28% | 3.65% | 16.34% | 16.18% | 17.62% |
| Operating profit margin | 9.81% | 2.04% | 9.39% | 10.41% | 10.41% |
| Pretax margin | 5.94% | 1.40% | 7.40% | 8.21% | 8.27% |
| Net profit margin | 4.72% | 1.08% | 5.32% | 6.33% | 6.27% |
Silgan Holdings Inc's profitability ratios depict a fluctuating trend over the years. The gross profit margin, representing the percentage of revenue retained after accounting for the cost of goods sold, decreased from 17.62% in December 31, 2020, to 16.18% in December 31, 2021, and then slightly increased to 16.34% in December 31, 2022, before witnessing a significant drop to 3.65% in December 31, 2023. It bounced back to 17.28% by December 31, 2024.
The operating profit margin, which indicates the percentage of revenue remaining after deducting operating expenses, remained relatively stable at around 10% in 2020 and 2021 but decreased to 9.39% in 2022, plunged to 2.04% in 2023, and recovered to 9.81% in 2024.
The pretax margin, showing the percentage of revenue left after all operating expenses but before income taxes, followed a similar pattern, declining from 8.27% in 2020 to 1.40% in 2023, but showed a partial recovery to 5.94% in 2024.
The net profit margin, reflecting the percentage of revenue that translates into profit for the company, decreased from 6.27% in 2020 to 4.72% in 2024, with a noticeable decline to 1.08% in 2023.
Overall, the company's profitability margins display a mix of fluctuations and declines, suggesting potential challenges in managing costs and optimizing operational efficiency during the period under review. Further analysis and attention to cost management strategies may be necessary to improve the company's profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.69% | 1.60% | 8.19% | 7.61% | 7.86% |
| Return on assets (ROA) | 3.22% | 0.85% | 4.64% | 4.62% | 4.74% |
| Return on total capital | 25.84% | 6.46% | 40.81% | 38.14% | 43.97% |
| Return on equity (ROE) | 13.89% | 3.41% | 19.84% | 22.98% | 24.64% |
Silgan Holdings Inc's profitability ratios show a fluctuating trend over the past five years.
1. Operating Return on Assets (Operating ROA) has been relatively stable, ranging from 7.61% to 8.19%, except for a notable drop to 1.60% in December 2023. This ratio indicates the company's ability to generate operating profit from its assets.
2. Return on Assets (ROA) has also shown some volatility, with values between 0.85% and 4.74%. This ratio evaluates the company's overall efficiency in generating profit from all its assets.
3. Return on Total Capital reflects a significant drop from 43.97% in 2020 to 6.46% in 2023, before slightly recovering to 25.84% in 2024. This ratio assesses the company's ability to generate returns for both debt and equity investors.
4. Return on Equity (ROE) has followed a decreasing trend, starting at 24.64% in 2020 and dropping to 13.89% in 2024. This ratio indicates the profitability of the company from the perspective of its shareholders.
Overall, the trend in these profitability ratios suggests some challenges in maintaining consistent profitability for Silgan Holdings Inc over the analyzed period. Investors and stakeholders may want to further investigate the reasons behind the fluctuations to assess the company's financial performance more comprehensively.