Newmont Corp. (NYSE:NEM)

The financial data reveals several important trends across the analyzed periods, indicating shifts in profitability and efficiency metrics over time.

Gross Profit Margin

The gross profit margin exhibited a generally strong performance during 2020 and early 2021, peaking near 37%. However, from late 2021 onward, a downward trend is apparent, with margins declining sharply and reaching lows around 12-15% by early 2024. This decline points to increased costs of goods sold or pressure on pricing affecting core profitability.

Operating Profit Margin

Operating profit margins followed a similar trajectory, showing robust growth through mid-2021, with a peak margin close to 30%. Subsequently, a marked contraction occurred, turning negative from mid-2022 forward, reaching approximately -14% by the first quarter of 2024. This reversal suggests escalating operating expenses or challenges in managing operational efficiencies.

Net Profit Margin

The net profit margin started relatively high, exceeding 30% in early 2020 but demonstrated considerable volatility. After an early decline, the metric briefly stabilized around 20% before deteriorating significantly from late 2022, dipping into negative territory and reaching nearly -21% by the beginning of 2024. This indicates overall profitability pressures, including possible impacts from financing costs, taxes, or extraordinary items.

Return on Equity (ROE)

ROE showed positive figures during the initial periods but consistently decreased across the timeline. From above 16% in early 2020, the return on equity diminished steadily, turning negative by late 2022 and further declining to approximately -9% by early 2024. This trend reflects weakening shareholder returns likely driven by reduced net income and increased equity base or losses.

Return on Assets (ROA)

ROA mirrored the declining patterns of other profitability ratios. Starting at just under 9% in early 2020, it decreased gradually, shifting into negative values by the end of 2022. The negative returns deepened, with ROA falling to nearly -5% by the latest period, signaling declining asset utilization effectiveness and impaired operational performance.

Overall, the company experienced strong profitability and efficiency in the early periods, with all margins and returns reaching peak values around mid-2021. However, from late 2021 through early 2024, there are clear and sustained declines across all major financial performance indicators. The persistent negative margins and returns in the most recent periods underscore serious challenges affecting profitability, operational efficiency, and asset utilization.

Sales Trend

Sales exhibited considerable fluctuation over the observed periods. Initial values showed a rise from early 2020, peaking at year-end 2020, followed by a decline in early 2021, and subsequent variability through to the first quarter of 2024. The overall pattern indicates periods of strong sales performance interrupted by declines, with the highest recorded sales occurring in the last two quarters of the timeframe, reaching above 3950 million US dollars.

Gross Profit Trend

Gross profit figures displayed notable volatility, with a significant peak in the third quarter of 2020 and a pronounced trough in the fourth quarter of 2021, where gross profit turned negative. Throughout 2022 and early 2023, gross profit remained positive but relatively subdued compared to earlier peaks. In the final quarters of the dataset, gross profit again dipped below zero before recovering sharply by the first quarter of 2024.

Gross Profit Margin Analysis

The gross profit margin generally trended downward from an initial level above 23% in early 2020 to a lower range around 12–15% by early 2024. Periods of margin expansion were observed in the first half of 2021, reaching above 37%, but were followed by a steady decline. The margin's reduction suggests narrowing profitability relative to sales over time, despite fluctuations in absolute gross profit and sales figures.

Overall Observations

There is a clear pattern of volatility in both sales and gross profit, with gross profit margins also trending downward over the period. The presence of negative gross profit values illustrates episodes of cost pressures or unfavorable conditions impacting profitability. The latest sales data points to a recovery or growth phase, whereas margins remain compressed compared to earlier periods. This divergence may indicate increasing costs, pricing pressures, or changes in sales mix affecting profitability sustainability.

Operating Income (Loss)

The operating income displayed significant fluctuations over the analyzed periods. In 2020, the company maintained positive operating income, peaking at 998 million in the third quarter. However, in 2021 the figure showed volatility, with a drastic decline to a loss of 626 million in the fourth quarter. This loss intensified markedly towards the end of 2022 and into 2023, with an operating loss reaching as low as 2,809 million in the final quarter of 2023. The most recent quarter, March 2024, shows some recovery with operating income at 400 million, yet still lower compared to earlier years.

Sales

Sales revenue followed a somewhat cyclical pattern, showing peaks and troughs each year. The highest sales were recorded in the final quarter of 2023 and the first quarter of 2024, at approximately 3,957 million and 4,023 million respectively, representing an upward trend compared to previous quarters. Earlier years showed more modest sales figures fluctuating between approximately 2,300 to 3,400 million, indicating gradual overall growth with some variability in intermediate quarters.

Operating Profit Margin

The operating profit margin showed a steady decline across the quarters. From a relatively strong margin above 20% in late 2020 to early 2021, it dropped sharply throughout 2022 and moved into negative territory by 2023. The margin reached particularly low levels at -14.39% in the fourth quarter of 2023 and remained negative in the first quarter of 2024 at -13.72%, signaling that the company’s operating profitability has deteriorated significantly despite the increase in sales revenue during these periods.

Overall Insights

Although sales revenue increased notably towards the end of the period, operating income and profitability margins deteriorated, indicating potential rising costs or other operational challenges impacting earnings. The transition from healthy profit margins to sustained losses suggests that revenue growth has not translated into operational efficiency or profitability. The recent partial recovery in operating income in early 2024 may indicate initial efforts toward stabilization, yet profitability remains a concern given the continuing negative margins.

The financial performance over the quarters reveals notable fluctuations in net income, sales, and net profit margin. The net income attributable to stockholders exhibits significant volatility, with periods of strong positive earnings interspersed with quarters of losses. For instance, there are quarters with net income surpassing 800 million US dollars early in the timeline, followed by dramatic declines and negative values in subsequent quarters, reflecting a challenging operating environment or cyclical impacts.

Sales figures demonstrate variability but remain within a relatively stable range, generally oscillating between approximately 2,300 million and 4,000 million US dollars. The sales trend shows some growth in later periods, reaching peaks near 4,000 million US dollars, suggesting either increased market demand or operational expansion. However, these increases in sales have not consistently translated into profitability.

The net profit margin reveals a declining trend over time, moving from robust positive percentages exceeding 30% in early quarters to negative margins in more recent periods. The earlier quarters indicate efficient conversion of sales into net income, but the later quarters reflect operating difficulties, cost pressures, or other adverse factors reducing profitability significantly. This deterioration results in margins dropping below zero and worsening to over negative 20% in the latest quarters, signaling challenges in sustaining profitable operations despite stable or growing sales.

Net Income

Characterized by high volatility with alternating positive earnings and net losses, showing exposure to fluctuating market or operational conditions.

Sales

Generally stable with a tendency to increase in later quarters, indicating growth in revenue streams despite earnings volatility.

Net Profit Margin

Exhibited a pronounced decline, transitioning from healthy profit margins exceeding 30% to significant negative margins, pointing to increasing cost pressures or inefficiencies impacting the bottom line.

Overall, the data suggest that while revenue generation has remained steady or shown signs of growth, profitability has deteriorated markedly over the observed period, raising concerns about cost management and operational effectiveness.

The net income attributable to stockholders exhibits notable volatility across the observed periods. Initially, net income demonstrates positive values with some fluctuations, reaching peaks such as 839 million US$ in Q3 2020 and 650 million US$ in Q2 2021. However, starting around Q4 2021, the profitability becomes less consistent, with some quarters registering negative net income, notably -46 million US$ in Q4 2021 and more pronounced losses including -1477 million US$ in Q4 2022 and -3158 million US$ in Q4 2023. The most recent quarter, Q1 2024, shows a return to positive net income but at a relatively modest 170 million US$ compared to earlier periods.

Total stockholders’ equity follows a generally declining trajectory from 2020 through late 2023. The equity base decreased from about 23 billion US$ in early 2021 to around 19 billion US$ by the end of 2023, indicating sustained equity erosion over these quarters. However, the equity value notably increases in Q1 2024 to nearly 29 billion US$, which represents a significant rebound relative to prior quarters.

Return on Equity (ROE), reflecting profitability in relation to equity, aligns with the net income trend and exhibits a downward pattern over time. In early 2020, ROE levels are relatively robust, at around 16-18%, but these values progressively decline through 2021 and 2022, eventually turning negative from late 2022 onwards. The negative ROE persists through the end of 2023 and into the start of 2024, reaching lows near -9%, which signals that the company generated losses relative to shareholder equity during this extended period.

Overall, the data indicates a period of financial stress marked by diminishing profitability, negative returns on equity, and decreasing equity values throughout much of the timeline. The sharp increase in equity in the first quarter of 2024 suggests a significant corporate event or capital infusion, which may be pivotal for future financial stability. The return to positive net income in the same quarter may imply early signs of recovery, though ROE remains negative.

The financial data indicates several notable trends and shifts across the reported periods. There is a clear volatility in net income attributable to stockholders, with values fluctuating significantly from positive to negative results. Initially, net income was robust with multiple quarters showing strong positive figures, including peaks such as the 839 million in September 2020 and 650 million in June 2021. However, starting around December 2021, net income began to exhibit increased instability, with some quarters presenting substantial losses, such as the negative 1,477 million in December 2022 and an even more pronounced loss of 3,158 million in December 2023. This pattern points to challenges in maintaining profitability during the later periods.

Total assets remained relatively stable through most of the timeline, hovering around the low to mid-30,000 million range. There is a slight downward trend observed from the peak values in early 2020 through late 2023. However, a significant increase in total assets is noted as of March 31, 2024, rising sharply to over 55,335 million, indicating a substantial change in asset base that could be related to acquisitions, revaluations, or other strategic asset changes.

The return on assets (ROA) displayed a declining trend across the periods, starting from a high of 9.8% in June 2020 to progressively lower values thereafter. From early 2022, the ROA turned negative, reflecting the impact of net losses combined with the asset base, and extending through to the latest period reported, with the ROA falling to nearly -4.83% by March 2024. This sustained negativity in ROA signals issues with asset utilization efficiency and profitability.

Profitability Trends

Net income showed initial strength with multiple profitable quarters, but has become erratic and largely negative in recent periods, indicating financial stress or extraordinary events impacting income.

Asset Base

Total assets were steady with minor fluctuations until a large jump in early 2024, suggesting a major change in the company's asset composition or scale.

Efficiency and Returns

ROA consistently declined from strong positive levels to substantial negative values over the time frame, reflecting declining efficiency in generating profits from assets.

Overall, the company exhibited stable performance in its early reported periods with moderate asset growth. However, recent years reveal significant challenges, marked by large net losses and declining profitability metrics, culminating in an abrupt increase in assets whose implications on future performance would merit closer examination.