Peabody Energy Corp (BTU)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 86.59% | 86.66% | 86.09% | 31.70% | 81.16% |
| Operating profit margin | 21.73% | 27.73% | 13.02% | -59.99% | 1.33% |
| Pretax margin | 21.60% | 25.26% | 11.54% | -64.64% | -3.58% |
| Net profit margin | 15.36% | 26.04% | 10.85% | -64.92% | -4.57% |
Peabody Energy Corp has shown a fluctuating trend in profitability ratios over the past five years. The gross profit margin has been consistently high, indicating efficient cost management and pricing strategies. However, the operating profit margin has shown significant variation, with a sharp decline in 2020 followed by a gradual recovery in the subsequent years. This suggests fluctuations in operating expenses and efficiency in generating operating income.
The pretax margin has also experienced fluctuations, with a notable negative margin in 2020, indicating challenges in generating profit before accounting for taxes. The net profit margin has followed a similar pattern, with substantial negative margins in 2020, reflecting a net loss for the company.
Overall, while Peabody Energy Corp has demonstrated strong gross profit margins, there are concerns regarding the variability and occasional negative profitability margins in recent years, highlighting the importance of closely monitoring and managing operating expenses and overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.03% | 24.62% | 8.73% | -37.03% | 0.94% |
| Return on assets (ROA) | 12.74% | 23.12% | 7.28% | -40.07% | -3.23% |
| Return on total capital | 30.30% | 42.76% | 24.53% | -185.92% | -0.81% |
| Return on equity (ROE) | 21.42% | 40.14% | 20.44% | -201.19% | -8.08% |
Peabody Energy Corp's profitability ratios have exhibited significant fluctuations over the past five years.
- Operating return on assets (Operating ROA) has ranged from a low of -37.03% in 2020 to a high of 24.62% in 2022, showing a mix of profitability performance.
- Return on assets (ROA) has also varied widely, with a low of -40.07% in 2020 to a high of 23.12% in 2022, indicating inconsistent profitability levels over the years.
- Return on total capital has shown great volatility, reaching a high of 42.76% in 2022 and a low of -185.92% in 2020, suggesting fluctuations in the company's ability to generate profits relative to its total capital employed.
- Return on equity (ROE) has experienced similar fluctuations, ranging from a low of -201.19% in 2020 to a high of 40.14% in 2021, reflecting the varying returns generated for the company's shareholders.
Overall, Peabody Energy Corp's profitability ratios indicate a lack of consistent profitability performance and highlight the challenges the company has faced in generating sustainable returns for its investors over the past five years. Further analysis and investigation into the factors driving these fluctuations would be necessary to understand the underlying reasons for the company's profitability trends.