Silgan Holdings Inc (SLGN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.07% | 16.68% | 16.50% | 18.01% | 15.90% |
| Operating profit margin | 9.40% | 8.02% | 8.63% | 9.08% | 8.01% |
| Pretax margin | 7.26% | 7.55% | 8.38% | 8.45% | 5.62% |
| Net profit margin | 5.61% | 5.42% | 6.45% | 6.41% | 4.32% |
Silgan Holdings Inc.'s profitability ratios provide insight into the company's ability to generate profits from its operations over the past five years. The gross profit margin has shown slight fluctuations, ranging from 15.90% in 2019 to 16.58% in 2023. This indicates the percentage of revenue retained after accounting for the cost of goods sold.
The operating profit margin has also varied, with an increasing trend from 8.87% in 2019 to 10.16% in 2023. This metric reflects the efficiency of the company's core operations in generating profits.
The pretax margin, which represents the percentage of profit before taxes relative to total revenue, has fluctuated over the years, peaking at 8.27% in 2020 and dropping to 7.05% in 2023.
The net profit margin, reflecting the company's bottom-line profitability after all expenses, has shown a similar pattern to the pretax margin, with fluctuations observed from 4.32% in 2019 to 5.44% in 2023.
Overall, the company has demonstrated relatively stable and improving profitability ratios over the years, with an increase in operating profit margin being a notable trend. However, fluctuations in the pretax and net profit margins suggest the need for continuous monitoring of cost management and revenue generation strategies to sustain and further enhance profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.18% | 6.86% | 6.19% | 6.72% | 7.29% |
| Return on assets (ROA) | 4.28% | 4.64% | 4.62% | 4.74% | 3.93% |
| Return on total capital | 13.42% | 11.86% | 10.77% | 11.41% | 11.05% |
| Return on equity (ROE) | 17.25% | 19.84% | 22.98% | 24.64% | 18.94% |
Silgan Holdings Inc.'s profitability ratios provide insight into the company's ability to generate profit from its operations and utilize its assets effectively.
- Operating return on assets (Operating ROA) has shown a slight decline from 8.59% in 2022 to 7.99% in 2023, suggesting a decrease in the company's ability to generate operating profit from its total assets. This decline may indicate operational challenges or increased costs.
- Return on assets (ROA) has also decreased slightly from 4.64% in 2022 to 4.28% in 2023. This ratio indicates the company's overall profitability relative to its total assets, showing a decline in efficiency in generating profit from its assets.
- Return on total capital has decreased from 12.26% in 2022 to 11.44% in 2023, indicating a lower return on the total capital employed by the company. This may suggest that the company is not efficiently utilizing its total capital to generate profit.
- Return on equity (ROE) has shown a decreasing trend from 19.84% in 2022 to 17.25% in 2023. This ratio reflects the company's ability to generate profit from shareholders' equity, and the decline may indicate a reduction in profitability relative to the shareholders' investment.
Overall, the decreasing trend in these profitability ratios for Silgan Holdings Inc. suggests potential challenges in optimizing operational efficiency and generating returns for its stakeholders. Management may need to focus on improving operational performance and utilizing resources more effectively to enhance profitability in the future.