Sylvamo Corp (SLVM)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 302,000 | 253,000 | 336,000 | 331,000 | 170,000 |
| Revenue | US$ in thousands | 3,773,000 | 3,721,000 | 3,628,000 | 3,502,000 | 3,009,000 |
| Net profit margin | 8.00% | 6.80% | 9.26% | 9.45% | 5.65% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $302,000K ÷ $3,773,000K
= 8.00%
Based on the provided data, Sylvamo Corp's net profit margin has shown variability over the years. The net profit margin is a key profitability ratio that indicates how efficiently the company is able to generate profit from its revenue after accounting for all expenses.
In December 31, 2020, the net profit margin was 5.65%, indicating that for every dollar of revenue generated, the company was able to retain $0.0565 as profit. This suggests a moderate level of profitability.
Subsequently, there was a significant improvement in the net profit margin to 9.45% in December 31, 2021, and further to 9.26% in December 31, 2022. These increases suggest that the company effectively managed its expenses relative to its revenue, resulting in higher profitability during these periods.
However, in December 31, 2023, the net profit margin decreased to 6.80%, indicating a potential decline in profitability compared to the previous years. This could be attributed to various factors such as increased expenses or a slowdown in revenue growth.
In the most recent year, December 31, 2024, the net profit margin improved to 8.00%. While this shows a rebound from the decline in the previous year, it is still lower than the peak profitability seen in 2021 and 2022.
Overall, Sylvamo Corp's net profit margin has displayed fluctuations over the years, with periods of both growth and decline. It is essential for the company to closely monitor its expenses and revenue generation to sustain and improve profitability in the future.
Peer comparison
Dec 31, 2024