Constellation Energy Corp (CEG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 73.87% | 12.97% | 8.74% | 14.92% | 16.19% |
| Operating profit margin | 18.47% | 6.46% | -1.19% | -0.90% | 6.71% |
| Pretax margin | 19.16% | 9.82% | -2.22% | 0.77% | 4.75% |
| Net profit margin | 15.91% | 6.51% | -0.63% | -0.37% | 3.35% |
Constellation Energy Corp's profitability ratios have shown some fluctuations over the years. The gross profit margin decreased from 16.19% in 2020 to 8.74% in 2022, before rebounding significantly to 73.87% in 2024, indicating a sharp improvement in the company's ability to generate profit from its core operations.
The operating profit margin was negative in 2021 and 2022, signifying that the company's operating expenses exceeded its revenues during those years. However, there was a positive trend with the operating profit margin increasing to 18.47% in 2024, suggesting better cost management and efficiency in operations.
The pretax margin experienced a decline in 2022 but then saw a substantial increase to 19.16% in 2024, indicating that Constellation Energy Corp was able to generate higher profits before accounting for taxes in the latter years.
Similarly, the net profit margin was negative in 2021 and 2022 but improved significantly to 15.91% in 2024, demonstrating a positive trend in the company's bottom-line profitability after accounting for all expenses and taxes.
Overall, the profitability metrics of Constellation Energy Corp show a mixed performance, with improvements in margins in the later years indicating potential growth and efficiency enhancements. However, it is crucial for the company to maintain and even enhance these profitability levels to ensure long-term financial health and sustainability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.22% | 3.17% | -0.62% | -0.37% | 2.46% |
| Return on assets (ROA) | 7.08% | 3.20% | -0.33% | -0.15% | 1.22% |
| Return on total capital | 30.51% | 15.91% | -2.64% | 4.00% | 9.62% |
| Return on equity (ROE) | 28.47% | 14.86% | -1.40% | -0.65% | 4.75% |
Constellation Energy Corp's profitability ratios indicate fluctuating performance over the years.
- Operating return on assets (Operating ROA) increased from 2021 to 2023, with a significant improvement in 2024, showing operational efficiency in generating earnings from its assets.
- Return on assets (ROA) had negative values in 2021 and 2022, but turned positive in 2023 and further improved in 2024, indicating a better utilization of assets to generate profits.
- Return on total capital declined in 2022 but saw a substantial increase in 2023 and 2024, showcasing the company's improved ability to generate returns for both debt and equity holders.
- Return on equity (ROE) also experienced negative returns in 2021 and 2022, but showed a strong recovery in 2023 and 2024, reflecting the efficiency in utilizing equity to generate profits for shareholders.
Overall, the company's profitability improved significantly from 2021 onwards, with a notable increase in 2024 across all profitability ratios, signaling enhanced performance and value creation for its stakeholders.