Smurfit WestRock plc (SW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.87% | 33.60% | 31.71% | 30.59% | 33.69% |
| Operating profit margin | 4.77% | 11.10% | 11.23% | 10.62% | 10.45% |
| Pretax margin | 2.65% | 9.36% | 10.09% | 9.03% | 8.77% |
| Net profit margin | 3.79% | 6.72% | 7.90% | 7.61% | 7.86% |
Smurfit WestRock plc's gross profit margin has shown some fluctuations over the past five years, starting at 33.69% in December 2020 and dropping to 19.87% by December 2024. Despite the decrease, the company has managed to maintain a relatively healthy level of gross profitability.
In terms of operating profit margin, Smurfit WestRock plc has generally maintained stability, with figures ranging from 10.45% in December 2020 to 4.77% in December 2024. This indicates that the company has been able to efficiently control its operating expenses and generate profits from core operations.
The pretax margin of Smurfit WestRock plc has shown an upward trend from 8.77% in December 2020 to 2.65% in December 2024, with a peak of 10.09% in December 2022. This suggests that the company has been effective in managing its pre-tax earnings relative to its total revenue over the years.
Lastly, the net profit margin of Smurfit WestRock plc has experienced a gradual decline from 7.86% in December 2020 to 3.79% in December 2024. This indicates that the company's bottom-line profitability has diminished over the period, possibly due to factors such as rising costs or lower revenue.
Overall, while Smurfit WestRock plc has demonstrated efficiency in controlling operating expenses and generating profits from core operations, it may need to focus on improving its net profitability to ensure sustainable long-term growth and value creation for its shareholders.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | — | 9.91% | 11.53% | 9.17% | 8.66% |
| Return on assets (ROA) | — | 6.00% | 8.11% | 6.57% | 6.51% |
| Return on total capital | — | 22.18% | 31.87% | 28.59% | 32.37% |
| Return on equity (ROE) | — | 13.63% | 20.15% | 17.56% | 17.78% |
Smurfit WestRock plc's profitability ratios have shown some fluctuation over the years. The Operating Return on Assets (Operating ROA) has increased from 8.66% in 2020 to 9.17% in 2021, then significantly rose to 11.53% in 2022, before slightly dropping to 9.91% in 2023. However, data for 2024 is not available. This indicates the company's ability to generate operating profit from its assets has generally improved.
Similarly, the Return on Assets (ROA) slightly increased from 6.51% in 2020 to 6.57% in 2021, then notably rose to 8.11% in 2022, before dropping to 6.00% in 2023. Data for 2024 is not available. This ratio reflects the company's efficiency in utilizing its assets to generate profit for its stakeholders.
The Return on Total Capital saw a peak of 32.37% in 2020, followed by a decrease to 28.59% in 2021, then a slight increase to 31.87% in 2022, and a significant drop to 22.18% in 2023. Data for 2024 is not available. This ratio measures the returns generated from all the capital invested in the company, including debt and equity.
Lastly, the Return on Equity (ROE) also experienced fluctuations, starting at 17.78% in 2020, dipping slightly to 17.56% in 2021, then increasing to 20.15% in 2022, and decreasing to 13.63% in 2023. Data for 2024 is not available. ROE indicates how efficiently the company is generating profits from the shareholders' equity invested in the business.
Overall, while there have been ups and downs in Smurfit WestRock plc's profitability ratios, the company has shown improvements in certain areas, such as Operating ROA and ROA, indicating a positive trend in generating returns from its assets. However, the fluctuations in Return on Total Capital and ROE suggest some challenges in effectively utilizing all forms of capital and maximizing returns for shareholders.