Black Hills Corporation (BKH)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 96.93% | 97.21% | 96.70% | 96.44% | 96.73% |
| Operating profit margin | 20.28% | 17.84% | 21.01% | 25.24% | 23.40% |
| Pretax margin | 12.35% | 11.11% | 12.51% | 15.35% | 13.19% |
| Net profit margin | 11.25% | 10.13% | 12.15% | 13.41% | 11.49% |
Black Hills Corporation's profitability ratios show fluctuations over the past five years. The gross profit margin, which indicates the company's ability to generate profits from its revenue after accounting for the cost of goods sold, has varied between 51.78% and 70.98%. In 2023, it increased to 57.84% from the previous year.
The operating profit margin reflects the company's operating efficiency and was in the range of 17.84% to 25.24%. In 2023, it improved to 20.28%. This shows that Black Hills Corporation was able to control its operating expenses relative to its revenue.
The pretax margin, a measure of how well the company is managing its operating and non-operating expenses, ranged from 11.60% to 16.25%. In 2023, it increased to 12.94%. This suggests that the company's overall expenses were managed effectively in relation to its total revenue.
The net profit margin, which represents the proportion of revenue that remains as profit after all expenses have been deducted, fluctuated between 10.13% and 13.41%. In 2023, it improved to 11.25%. This indicates that Black Hills Corporation was able to maintain profitability in its operations, although at a slightly lower level compared to previous years. Overall, the trend in profitability margins suggests that the company has been successful in managing its costs and maintaining a reasonable level of profitability over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.91% | 4.73% | 4.48% | 5.30% | 5.37% |
| Return on assets (ROA) | 2.73% | 2.69% | 2.59% | 2.81% | 2.64% |
| Return on total capital | 6.49% | 6.73% | 5.73% | 6.63% | 6.66% |
| Return on equity (ROE) | 8.15% | 8.63% | 8.49% | 8.89% | 8.44% |
Black Hills Corporation's profitability ratios show a mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has been relatively stable, fluctuating between 4.48% and 5.37%. This ratio indicates the company's ability to generate operating profits from its assets, with a higher percentage indicating better operational efficiency.
2. Return on assets (ROA) has also remained consistent, ranging from 2.59% to 2.81%. This metric measures overall profitability in relation to total assets, reflecting the company's ability to generate earnings from its asset base.
3. Return on total capital has shown a similar pattern, with fluctuations between 5.58% and 6.93%. This ratio considers both debt and equity in assessing the company's profitability, indicating the return generated on all invested capital.
4. Return on equity (ROE) has shown some variation, with figures ranging from 8.15% to 8.89%. ROE assesses the profitability of shareholder's equity, reflecting the company's ability to generate profits from shareholders' investments.
Overall, while Black Hills Corporation's profitability ratios have shown some stability over the years, there have been fluctuations in the specific ratios. It is important for the company to analyze the factors contributing to these shifts and work towards maintaining and improving profitability in the future.