Ramaco Resources(Metc) Financials: Net Profit Margin Compared To Industry Average, Plus Other Key Ratios

Company Report for METC

Report - net profit margin

This chart shows the historical trend of net profit margin for METC compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Net Profit Margin

Definition: Net profit margin shows how much profit remains after paying all costs — including operating expenses, interest, and taxes — for every dollar of sales. A higher margin means the business is efficient and keeps more of its sales as bottom-line profit. Falling margins may signal rising costs or pricing pressure.

Interpretation:
• In '2021', METC's net profit margin was 14.0%, measuring the overall profitability of the company. Industry average for Coal Mining in '2021' stood at -20.0%.
• In '2022', METC's net profit margin was 20.5%, measuring the overall profitability of the company. The increase since '2021' reflects strengthening financial performance. Industry average for Coal Mining in '2022' stood at 28.8%. Industry average increased by 48.7% compared to previous year.
• In '2023', METC's net profit margin was 11.9%, measuring the overall profitability of the company. The decline from '2022' may indicate some operational or financial challenges. Industry average for Coal Mining in '2023' stood at -3.7%. Industry average declined by 32.5% from previous year.
• In '2024', METC's net profit margin was 1.7%, measuring the overall profitability of the company. The decline from '2023' may indicate some operational or financial challenges. Industry average for Coal Mining in '2024' stood at 10.0%. Industry average increased by 13.7% compared to previous year.
Overall, METC's net profit margin has been volatile but showed a downward trend over the past 4 years.

Formula: Net Profit Margin = Net Income / Revenue

Good Range: Ranges 5%-20% for many industries.