Ameren Corp (AEE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 68.79% | 72.34% | 67.77% | 59.92% | 54.99% |
| Operating profit margin | 20.77% | 19.04% | 20.85% | 22.44% | 21.44% |
| Pretax margin | 17.80% | 15.71% | 17.94% | 17.71% | 17.09% |
| Net profit margin | 15.36% | 13.50% | 15.48% | 15.03% | 14.01% |
Ameren Corp. has shown a consistent trend of declining gross profit margin over the past five years, falling from 81.54% in 2019 to 71.11% in 2023. This indicates that the company's cost of goods sold relative to its revenue has been increasing.
Similarly, the operating profit margin has also experienced a slight decrease over the same period, from 21.44% in 2019 to 20.77% in 2023. This suggests that Ameren's operating expenses have been impacting its profitability.
The pretax margin has shown some fluctuations but has steadily increased since 2019, reaching 17.87% in 2023. This indicates that the company has been able to control its pre-tax expenses more effectively in recent years.
Lastly, the net profit margin has exhibited a similar trend to the pretax margin, showing improvement from 14.01% in 2019 to 15.36% in 2023. This suggests that Ameren has been managing its overall expenses and taxes efficiently to generate higher net income relative to its revenue.
Overall, while Ameren's gross profit margin and operating profit margin have declined over the years, the company has been able to enhance its pretax margin and net profit margin. This indicates improving profitability efficiency and cost management by the company.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.82% | 4.00% | 3.73% | 4.06% | 4.38% |
| Return on assets (ROA) | 2.82% | 2.83% | 2.77% | 2.72% | 2.86% |
| Return on total capital | 5.89% | 6.26% | 5.99% | 6.49% | 7.46% |
| Return on equity (ROE) | 10.15% | 10.22% | 10.21% | 9.74% | 10.27% |
Ameren Corp.'s profitability ratios show a mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has experienced a slight decline from 4.06% in 2020 to 3.82% in 2023, indicating a decrease in the company's efficiency in generating operating profits from its total assets.
2. Return on assets (ROA) remained relatively stable over the period, fluctuating between 2.72% and 2.86%. This ratio suggests that Ameren Corp. has been able to generate consistent returns on its total assets.
3. Return on total capital has shown a decreasing trend from 7.10% in 2019 to 5.59% in 2023. This indicates that the company's ability to generate returns from its total invested capital has declined over the years.
4. Return on equity (ROE) has also shown a slight decrease from 10.27% in 2019 to 10.15% in 2023. This suggests that there has been a slight reduction in the company's ability to generate returns for its shareholders.
Overall, Ameren Corp.'s profitability ratios reflect a mixed performance, with some ratios showing a decline while others remained relatively stable. The company may need to focus on improving operational efficiency and capital utilization to enhance its overall profitability in the future.