Black Hills Corporation (BKH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 83.95% | 87.11% | 90.40% | 93.58% | 96.93% | 97.16% | 97.24% | 97.28% | 97.21% | 97.06% | 96.99% | 96.92% | 96.70% | 114.28% | 110.73% | 111.05% | 111.73% | 93.26% | 97.51% | 97.60% |
| Operating profit margin | 23.64% | 22.44% | 23.41% | 22.99% | 20.28% | 18.42% | 17.32% | 17.24% | 17.84% | 18.91% | 20.06% | 20.78% | 21.01% | 22.50% | 22.50% | 23.05% | 25.24% | 25.10% | 24.71% | 23.84% |
| Pretax margin | 14.54% | 13.56% | 14.73% | 14.22% | 12.34% | 11.07% | 10.23% | 10.58% | 11.11% | 11.79% | 12.77% | 13.05% | 12.52% | 13.70% | 13.49% | 13.84% | 15.35% | 14.96% | 13.55% | 12.96% |
| Net profit margin | 12.84% | 12.00% | 12.96% | 12.92% | 11.25% | 10.08% | 9.46% | 9.62% | 10.13% | 11.07% | 11.88% | 12.06% | 12.15% | 12.96% | 12.78% | 12.87% | 13.41% | 13.01% | 11.70% | 11.27% |
The profitability ratios of Black Hills Corporation show varying trends over the reported periods.
1. Gross Profit Margin:
The gross profit margin remained relatively stable around the range of 96% to 97% until December 2023. However, there was a decline noted in the last quarter of 2023, dropping to 93.58%, followed by continuous decreases in subsequent quarters down to 83.95% by December 2024. This downward trend indicates a potential decrease in profitability related to production and sales activities.
2. Operating Profit Margin:
The operating profit margin displayed fluctuations throughout the reporting periods. It peaked at 25.24% in December 2020 but gradually decreased over time, with a notable increase in March 2024 and June 2024. However, the margin slightly declined to 23.64% by December 2024. This suggests fluctuations in operating efficiency and cost management throughout the given timeframe.
3. Pretax Margin:
The pretax margin trended similarly to the operating profit margin, showing fluctuations over the periods reported. It reached its highest point of 15.35% in December 2020 before exhibiting a general downward trend. However, there were slight increases in the margins in the first two quarters of 2024. The margin stood at 14.54% by December 2024, which indicates the company's ability to generate profits before tax expenses.
4. Net Profit Margin:
The net profit margin also experienced fluctuations during the reporting periods. It peaked at 13.41% in December 2020, gradually declined, with occasional increases noted in the margins. The net profit margin stood at 12.84% by December 2024, indicating the company's overall profitability after all expenses, including taxes, have been accounted for.
Overall, the analysis of Black Hills Corporation's profitability ratios suggests that the company has experienced fluctuations in its profitability metrics over time, with potential challenges in maintaining consistent margins in the more recent quarters. It is crucial for the company to address the factors contributing to these fluctuations to ensure sustained profitability in the future.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.02% | 4.90% | 4.89% | 5.08% | 4.91% | 4.69% | 4.76% | 4.83% | 4.73% | 4.71% | 4.92% | 4.87% | 4.48% | 4.73% | 4.74% | 4.75% | 5.30% | 5.41% | 5.36% | 5.22% |
| Return on assets (ROA) | 2.73% | 2.62% | 2.71% | 2.85% | 2.73% | 2.57% | 2.60% | 2.70% | 2.69% | 2.76% | 2.91% | 2.83% | 2.59% | 2.72% | 2.69% | 2.65% | 2.81% | 2.80% | 2.54% | 2.47% |
| Return on total capital | 6.49% | 6.19% | 6.55% | 6.88% | 6.74% | 6.69% | 6.34% | 6.48% | 6.90% | 6.26% | 6.41% | 6.35% | 5.92% | 6.18% | 6.69% | 6.72% | 7.03% | 7.01% | 6.81% | 7.05% |
| Return on equity (ROE) | 7.80% | 7.39% | 8.21% | 8.28% | 8.16% | 8.05% | 7.87% | 8.23% | 8.63% | 8.91% | 9.23% | 8.98% | 8.49% | 9.00% | 8.84% | 8.79% | 8.89% | 8.72% | 7.76% | 7.48% |
Black Hills Corporation's profitability ratios show fluctuating trends over the period analyzed.
1. Operating return on assets (Operating ROA) ranged between 4.48% to 5.41% during the period. The highest value was observed on September 30, 2020, while the lowest was recorded on December 31, 2021. There was a slight increase from March 31, 2024, to December 31, 2024.
2. Return on assets (ROA) varied between 2.47% and 2.91%. The highest ROA was on June 30, 2022, and the lowest on September 30, 2023. There was some fluctuation in these ratios but with no clear trend.
3. Return on total capital fluctuated between 5.92% and 7.05%. The highest return was on December 31, 2020, while the lowest was on September 30, 2024. There was a general decreasing trend in this ratio, with some fluctuations.
4. Return on equity (ROE) ranged between 7.39% and 9.23%. The highest ROE was on June 30, 2022, while the lowest was on September 30, 2024. The trend in ROE was also fluctuating, with some periods of increase and decrease.
Overall, Black Hills Corporation's profitability ratios display variability over time, with no consistent upward or downward trend across all the metrics. Monitoring these ratios will be crucial to assess the company's financial performance and effectiveness in generating returns for its shareholders.