American Electric Power Co Inc (AEP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 69.24% | 92.44% | 92.07% | 91.66% | 91.30% |
| Operating profit margin | 21.82% | 18.73% | 17.73% | 20.32% | 20.03% |
| Pretax margin | 14.85% | 11.92% | 11.78% | 15.51% | 15.02% |
| Net profit margin | 15.05% | 11.63% | 11.75% | 14.82% | 14.75% |
American Electric Power Co Inc has shown consistent improvement in its gross profit margin over the years, increasing from 91.30% in 2020 to 92.44% in 2023 before experiencing a notable drop to 69.24% in 2024. This could indicate a shift in the cost structure or pricing strategy impacting the company's profitability from sales.
The operating profit margin of the company has fluctuated over the years, starting at 20.03% in 2020, peaking at 21.82% in 2024. Although there was a dip in 2022 at 17.73%, the company managed to recover and improve its operational efficiency in the following years.
The pretax margin of American Electric Power Co Inc has shown a declining trend, starting at 15.02% in 2020 and dropping to 11.92% in 2023 before rebounding to 14.85% in 2024. This indicates fluctuations in the company's profitability before ultimately recovering in the most recent year.
The net profit margin, which represents the company's bottom line profitability, has shown some variability as well, ranging from 14.75% in 2020 to 15.05% in 2024. Despite dropping to 11.63% in 2023, the company managed to improve its profitability in the final year of the analyzed period.
Overall, American Electric Power Co Inc's profitability ratios exhibit a mix of stability and fluctuation over the years, with varying trends in gross profit, operating profit, pretax profit, and net profit margins. Further analysis and context would be needed to understand the underlying factors driving these changes in profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.18% | 3.68% | 3.73% | 3.89% | 3.70% |
| Return on assets (ROA) | 2.88% | 2.28% | 2.47% | 2.84% | 2.72% |
| Return on total capital | 6.50% | 5.65% | 5.98% | 6.35% | 6.03% |
| Return on equity (ROE) | 11.01% | 8.75% | 9.66% | 11.09% | 10.71% |
American Electric Power Co Inc's profitability ratios show a mixed performance over the period from 2020 to 2024.
- Operating Return on Assets (Operating ROA) improved from 3.70% in 2020 to 4.18% in 2024, indicating the company's ability to generate operating profits from its assets has increased.
- Return on Assets (ROA) had a slight fluctuation, starting at 2.72% in 2020, peaking at 2.88% in 2024. This ratio reveals the company's efficiency in generating profits from its total assets, with a moderate improvement over the years.
- Return on Total Capital showed a similar pattern to Operating ROA, with a gradual increase from 6.03% in 2020 to 6.50% in 2024. This metric assesses the profitability of both debt and equity capital invested in the company.
- Return on Equity (ROE) experienced fluctuations, starting at 10.71% in 2020, reaching its peak of 11.09% in 2021, then declining to 8.75% in 2023 before rebounding to 11.01% in 2024. ROE reflects the profitability for the shareholders' equity investment in the company.
Overall, American Electric Power Co Inc showed some improvements in its profitability ratios over the period, demonstrating a reasonable ability to generate profits for its shareholders and efficiently utilize its assets and capital.