The AES Corporation (AES)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 249,000 | -546,000 | -409,000 | 46,000 | 303,000 |
| Revenue | US$ in thousands | 12,668,000 | 12,617,000 | 11,141,000 | 9,660,000 | 10,189,000 |
| Net profit margin | 1.97% | -4.33% | -3.67% | 0.48% | 2.97% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $249,000K ÷ $12,668,000K
= 1.97%
The net profit margin of AES Corp. has fluctuated over the past five years. In 2019, the company reported a net profit margin of 2.97%, indicating that for every $1 of revenue, AES Corp. generated a profit of $0.0297. However, in 2020, the net profit margin decreased to 0.48%, suggesting a decline in profitability.
The trend continued in 2021 and 2022, with net profit margins of -3.67% and -4.33% respectively, indicating that AES Corp. experienced consecutive years of negative profitability. This could signal challenges in managing costs or generating sufficient revenue to cover expenses.
In 2023, there was a slight improvement in the net profit margin to 1.97%, which may indicate efforts by AES Corp. to enhance operational efficiency or increase revenue streams. Overall, the fluctuating net profit margins reflect the company's profitability struggles and the need for consistent performance improvement to sustain long-term financial health.