Ameren Corp (AEE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 46.23% | 42.01% | 46.78% | 49.33% |
| Operating profit margin | 19.89% | 20.77% | 19.04% | 20.85% | 22.44% |
| Pretax margin | 16.66% | 17.87% | 15.77% | 18.02% | 17.81% |
| Net profit margin | 15.51% | 15.36% | 13.50% | 15.48% | 15.03% |
Ameren Corp's profitability ratios based on the provided data show fluctuations in the company's performance over the years.
The Gross Profit Margin decreased from 49.33% in 2020 to 42.01% in 2022, indicating a decline in the percentage of revenue remaining after deducting the cost of goods sold. However, there was a significant increase to 100.00% in 2024, which might be an anomaly or could be due to specific circumstances in that year.
The Operating Profit Margin declined from 22.44% in 2020 to 19.04% in 2022, suggesting a decrease in the percentage of revenue left after subtracting operating expenses. In 2024, the margin was at 19.89%, indicating some improvement from the previous year.
The Pretax Margin followed a similar trend, decreasing from 17.81% in 2020 to 15.77% in 2022 before slightly increasing to 16.66% in 2024. This ratio reflects the company's profitability before accounting for taxes.
The Net Profit Margin, which represents the percentage of revenue that translates into net income, decreased from 15.03% in 2020 to 13.50% in 2022 but then increased to 15.51% in 2024. This indicates the company's ability to control costs and generate profits for its shareholders.
Overall, Ameren Corp's profitability has shown some fluctuations over the years, with varying levels of efficiency in generating profits relative to its revenue. It would be important to delve deeper into the reasons behind these fluctuations to assess the company's long-term profitability prospects.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.88% | 3.82% | 4.00% | 3.73% | 4.06% |
| Return on assets (ROA) | 6.15% | 2.82% | 2.83% | 2.77% | 2.72% |
| Return on total capital | 26.22% | 16.79% | 16.57% | 15.82% | 15.47% |
| Return on equity (ROE) | 16.04% | 10.15% | 10.22% | 10.21% | 9.74% |
Ameren Corp's profitability ratios have shown varying trends over the years.
1. Operating return on assets (Operating ROA) has fluctuated between 3.73% and 7.88% from 2020 to 2024, with the highest value recorded in 2024. This ratio indicates that the company has been generating operating income more efficiently in 2024 compared to the previous years.
2. Return on assets (ROA) has also exhibited an increasing trend from 2.72% in 2020 to 6.15% in 2024. This ratio reflects the overall profitability of the company's assets, showing a significant improvement in 2024.
3. Return on total capital has consistently increased from 15.47% in 2020 to 26.22% in 2024. This ratio demonstrates the efficiency of utilizing both debt and equity in generating profits, with a notable surge in 2024.
4. Return on equity (ROE) has shown a steady increase from 9.74% in 2020 to 16.04% in 2024. ROE reflects the return generated for the shareholders' investments, and the upward trend indicates an improvement in the company's ability to generate profits relative to shareholders' equity.
Overall, Ameren Corp's profitability ratios have generally improved over the years, with significant enhancements in 2024 across all key metrics, signaling increased profitability and efficiency in utilizing assets and capital.