What do SQM's past earnings say about its stability?

Sociedad Quimica y Minera de Chile (SQM) has demonstrated significant volatility in its financial performance over the past three years, which raises concerns about its stability. The following points highlight the key aspects of SQM's earnings volatility:

1. **Earnings Decline in 2024**: SQM's net income plummeted to -$397.64 million in 2024, compared to $2.02 billion in 2023. This sharp decline indicates a severe downturn in profitability.

|code|Ticker|Name|Date|Net Income (FY) YoY|Net Income (FY)|market_code|
|---|---|---|---|---|---|---|
|SQM|SQM.N|Sociedad Quimica y Minera de Chile|2022|560.9677392119283|3.914284E9|169|
|SQM|SQM.N|Sociedad Quimica y Minera de Chile|2023|-48.4007036791403|2.019743E9|169|
|SQM|SQM.N|Sociedad Quimica y Minera de Chile|2024|-119.68740577390291|-3.97635E8|169|

|code|Ticker|Name|Date|Total Revenue (FY)|Total Revenue (FY) YoY|market_code|
|---|---|---|---|---|---|---|
|SQM|SQM.N|Sociedad Quimica y Minera de Chile|2022|1.0710578E10|274.19284739799775|169|
|SQM|SQM.N|Sociedad Quimica y Minera de Chile|2023|7.46749E9|-30.279299585886026|169|
|SQM|SQM.N|Sociedad Quimica y Minera de Chile|2024|4.528761E9|-39.35363823721224|169|

2. **Revenue Fluctuations**: The company's total revenue also experienced significant fluctuations, decreasing to $4.53 billion in 2024 from $7.47 billion in 2023, and earlier peaking at $10.71 billion in 2022. These changes suggest that SQM's revenue streams are subject to substantial volatility.
3. **Stability Concerns**: The combination of a large net loss in 2024 and a significant decline in revenue raises questions about SQM's long-term financial stability. Such volatility could make it challenging for the company to maintain a consistent return on investment for shareholders.

In conclusion, SQM's recent financial performance reflects significant instability, primarily due to a sharp decline in both net income and total revenue. These fluctuations could impact the company's ability to generate consistent returns and may warrant close monitoring by investors and stakeholders.