American Electric Power Co Inc (AEP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 75.90% | 95.80% | 95.86% | 95.99% | 95.36% | 95.28% | 94.91% | 94.77% | 94.95% | 94.87% | 95.02% | 95.04% | 94.89% | 94.86% | 94.99% | 94.88% | 94.46% | 94.55% | 94.68% | 94.96% |
| Operating profit margin | 21.52% | 22.10% | 20.83% | 18.73% | 18.11% | 15.77% | 16.21% | 17.73% | 19.16% | 21.12% | 20.98% | 20.32% | 20.18% | 19.85% | 19.72% | 20.03% | 18.17% | 17.97% | 16.76% | 16.66% |
| Pretax margin | 19.38% | 18.10% | 16.73% | 14.64% | 13.06% | 12.55% | 12.53% | 14.43% | 12.32% | 14.96% | 16.05% | 15.51% | 15.62% | 15.42% | 15.07% | 15.02% | 12.94% | 12.91% | 12.01% | 12.26% |
| Net profit margin | 19.86% | 20.71% | 19.53% | 16.68% | 15.26% | 12.87% | 12.72% | 14.40% | 12.21% | 14.37% | 15.38% | 14.82% | 14.59% | 14.81% | 14.75% | 14.75% | 12.85% | 12.54% | 12.08% | 12.34% |
American Electric Power Co Inc has demonstrated a consistent and strong performance in terms of profitability ratios. The Gross Profit Margin has shown an increasing trend over the years, reaching a high of 95.99% as of December 31, 2023. This indicates that the company is effectively managing its cost of goods sold and generating a high percentage of revenue as gross profit.
In terms of Operating Profit Margin, the company has shown fluctuations but overall improvement, with a notable spike to 22.10% as of September 30, 2024. This indicates that the company is efficiently managing its operating expenses and generating a significant percentage of revenue as operating profit.
The Pretax Margin has also shown an overall increasing trend, reaching a peak of 19.38% as of December 31, 2024. This demonstrates the company's ability to generate profit before accounting for taxes, reflecting effective cost management and operational efficiency.
Furthermore, the Net Profit Margin has shown a consistent improvement, reaching 20.71% as of September 30, 2024. This ratio indicates the company's ability to generate profit after accounting for all expenses, including taxes, and reflects the overall profitability of the company.
Overall, the profitability ratios of American Electric Power Co Inc reflect a strong financial performance, with consistent improvements in gross profit margin, operating profit margin, pretax margin, and net profit margin over the years.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.12% | 4.50% | 4.12% | 3.68% | 3.67% | 3.20% | 3.38% | 3.73% | 3.95% | 4.16% | 4.00% | 3.89% | 3.82% | 3.71% | 3.67% | 3.70% | 3.45% | 3.51% | 3.29% | 3.42% |
| Return on assets (ROA) | 3.80% | 4.21% | 3.86% | 3.27% | 3.09% | 2.61% | 2.66% | 3.03% | 2.52% | 2.83% | 2.93% | 2.84% | 2.76% | 2.77% | 2.75% | 2.72% | 2.44% | 2.44% | 2.37% | 2.53% |
| Return on total capital | 6.82% | 6.80% | 6.17% | 5.57% | 5.55% | 5.37% | 5.26% | 5.86% | 6.10% | 6.62% | 6.74% | 6.35% | 6.07% | 6.02% | 5.95% | 6.03% | 5.59% | 5.85% | 5.62% | 5.79% |
| Return on equity (ROE) | 14.53% | 15.84% | 14.62% | 12.54% | 11.63% | 10.48% | 10.57% | 11.84% | 9.47% | 10.70% | 11.06% | 11.09% | 10.70% | 10.93% | 10.87% | 10.71% | 9.41% | 9.51% | 9.34% | 9.78% |
American Electric Power Co Inc has shown a positive trend in its profitability ratios over the years.
1. Operating Return on Assets (Operating ROA) has improved from 3.42% in December 2019 to 4.12% in March 2024, with some fluctuations in between. This indicates that the company is effectively generating operating profits relative to its total assets.
2. Return on Assets (ROA) has also increased from 2.53% in December 2019 to 3.80% in December 2024, with occasional dips. This metric reflects the overall profitability of the company in generating profits from its assets.
3. Return on Total Capital has seen a steady rise from 5.79% in December 2019 to 6.82% in December 2024. This shows the company's ability to generate returns from its total capital employed in the business.
4. Return on Equity (ROE) has shown a consistent upward trend, starting at 9.78% in December 2019 and reaching 14.53% in December 2024. This demonstrates the company's ability to create shareholder value and generate a return on the equity invested in the business.
Overall, the profitability ratios of American Electric Power Co Inc indicate improving efficiency and effectiveness in utilizing its assets and capital to generate profits and create value for its shareholders.