Sylvamo Corp (SLVM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 23.88% | 21.98% | 21.49% | 20.19% | 23.13% | 26.31% | 27.11% | 28.62% | 29.99% | 30.19% | 31.73% | 34.63% | 34.45% | 35.19% | 34.42% | 31.30% | 30.18% |
| Operating profit margin | 13.07% | 11.12% | 8.95% | 7.00% | 9.01% | 10.64% | 13.28% | 15.56% | 16.97% | 15.75% | 15.07% | 15.34% | 12.68% | 12.34% | 10.74% | 8.03% | 6.45% |
| Pretax margin | 10.73% | 9.88% | 8.95% | 7.82% | 9.87% | 11.45% | 12.72% | 13.99% | 11.58% | 10.86% | 10.32% | 11.60% | 13.24% | 12.97% | 11.81% | 8.15% | 6.58% |
| Net profit margin | 8.00% | 7.17% | 6.30% | 5.40% | 6.77% | 8.05% | 9.25% | 6.40% | 4.49% | 3.60% | 3.21% | 8.31% | 9.87% | 10.51% | 9.74% | 6.72% | 5.65% |
Sylvamo Corp's profitability ratios have shown some fluctuations over the reported periods. Let's break down the analysis based on the key profitability ratios:
1. Gross Profit Margin:
The gross profit margin indicates the profitability of Sylvamo Corp's core business activities. The trend shows a gradual decline from December 2020 to December 2024. The margin peaked at 35.19% in September 2021 but has since declined steadily, reaching 23.88% by December 2024. This decline may indicate challenges in managing production costs and pricing strategies.
2. Operating Profit Margin:
The operating profit margin reflects the company's ability to control operating expenses while generating revenue. Sylvamo Corp saw an increase in this margin from December 2020 to December 2022, reaching a peak of 16.97%. However, the margin decreased in the subsequent periods, indicating potential inefficiencies in cost management or changes in revenue generation strategies.
3. Pretax Margin:
The pretax margin illustrates Sylvamo Corp's profitability before taxes. The trend shows fluctuations, with a peak of 13.99% in March 2023. However, the margin decreased towards the end of the reporting period, standing at 10.73% by December 2024. This trend suggests varying levels of operational efficiency and cost control measures over time.
4. Net Profit Margin:
The net profit margin reflects the company's bottom-line profitability after all expenses, including taxes. Sylvamo Corp experienced fluctuations in this margin, with a decline observed in the initial periods followed by a slight recovery towards the end of the reporting period. The margin stood at 8.00% by December 2024, showing an improvement from the low point of 3.21% in June 2022.
In conclusion, Sylvamo Corp's profitability ratios demonstrate a mixed performance over the reported periods. The company may need to focus on cost management, operational efficiency, and revenue generation strategies to maintain or improve its profitability levels in the future.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.93% | 14.65% | 12.30% | 9.22% | 11.73% | 14.15% | 17.75% | 20.94% | 23.69% | 21.56% | 20.72% | 20.12% | 16.37% | 14.32% | 10.39% | — | 6.66% |
| Return on assets (ROA) | 11.60% | 9.44% | 8.66% | 7.11% | 8.81% | 10.70% | 12.36% | 8.61% | 6.27% | 4.93% | 4.41% | 10.89% | 12.75% | 12.20% | 9.42% | — | 5.84% |
| Return on total capital | 54.07% | 44.72% | 44.94% | 37.46% | 45.73% | 56.94% | 62.88% | 75.19% | 95.87% | 245.35% | 236.90% | 173.41% | 249.45% | 147.92% | 14.14% | 11.60% | 9.19% |
| Return on equity (ROE) | 35.66% | 28.82% | 28.07% | 22.38% | 28.08% | 35.65% | 40.49% | 30.51% | 25.07% | 53.49% | 48.02% | 89.12% | 181.87% | 126.04% | 12.83% | 9.71% | 8.05% |
Sylvamo Corp's profitability ratios exhibit varying trends over the specified time period.
- Operating return on assets (Operating ROA) has shown an upward trend, starting at 6.66% on December 31, 2020, and reaching 18.93% on December 31, 2024, with fluctuations along the way.
- Return on assets (ROA) has been more volatile compared to Operating ROA, with peaks and valleys across the periods. It began at 5.84% on December 31, 2020, and rose to 11.60% by December 31, 2024.
- Return on total capital started at 9.19% on December 31, 2020, spiked at 249.45% on December 31, 2021, and then fluctuated down to 54.07% by December 31, 2024.
- Return on equity (ROE) had a similar pattern to Return on Total Capital, with significant growth from 8.05% on December 31, 2020, peaking at 181.87% on December 31, 2021, and gradually decreasing to 35.66% by December 31, 2024.
In conclusion, Sylvamo Corp has shown improvements in profitability metrics from 2020 to 2024, but the trends have been somewhat volatile, indicating potential fluctuations in the company's financial performance during this period.