Revenue Analysis:
RPM has shown varied revenue figures over the last three years. The Total Revenue increased from $1,516,176,000 in 2023-02 to $2,012,985,000 in 2023-08, suggesting growth, but then slightly decreased to $1,522,982,000 by 2024-02. Operating Revenue followed a similar trend. Gross Profit also increased notably from $538,034,000 in 2023-02 to $828,617,000 in 2023-08 before a decline to $607,164,000 in 2024-02, indicating fluctuations in profit margins.
Cost Management:
Cost of Revenue and Operating Expenses have been significant, with Cost of Revenue peaking at $1,241,062,000 in 2023-05 and Operating Expenses at $531,032,000 in 2023-08. Total Expenses peaked at $1,771,133,000 in 2023-05, reflecting high operational costs impacting the company’s profitability.
Profitability Analysis:
EBITDA consistently grew from $111,679,000 in 2023-02 to $344,511,000 in 2023-08, then decreased to $154,587,000 by 2024-02. Operating Income showed a peak of $297,585,000 in 2023-08. Pretax Income followed a similar trend, reaching a high of $269,154,000 in 2023-08. Net Income showed highest at $201,313,000 in the same period but then decreased to $61,499,000 by 2024-02.
Cash Flow Indicators:
Reconciled Depreciation and Interest Expenses are critical cash flow indicators. Depreciation has slightly increased over the period, suggesting ongoing investment in fixed assets, while Interest Expense reached a high of $33,630,000 in 2023-05, reflecting higher debt servicing costs.
Taxation:
The Tax Rate for Calcs varied, increasing from 0.359 in 2023-02 to 0.264 in 2024-02. Tax Provision has also ranged widely, with a minimum of $15,248,000 in 2023-02 to a maximum of $67,841,000 in 2023-08, correlating with changes in Pretax Income. The Tax Effect of Unusual Items showed fluctuations, affecting overall tax liabilities.
Shareholder Metrics:
Diluted and Basic EPS both peaked in 2023-08 at 1.56 and 1.57, respectively, indicative of maximum profitability per share during this period. Average Shares remained stable, suggesting no significant buybacks or dilutions. Net Income Available to Common Stockholders was highest at $200,210,000 in 2023-08, reflecting robust earnings distribution to shareholders.
Conclusion:
RPM’s financial performance has demonstrated periods of significant growth, particularly notable in mid-2023. However, some volatility in earnings and costs suggest the need for careful expense management and possibly refining pricing strategies to enhance profitability and shareholder returns consistently.