Constellation Energy Corp (CEG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Gross profit margin | 21.82% | 15.25% | 8.69% |
| Operating profit margin | 6.46% | 2.03% | -1.76% |
| Pretax margin | 9.96% | -2.24% | 0.10% |
| Net profit margin | 6.51% | -0.65% | -1.04% |
Constellation Energy Corporation's profitability ratios exhibit varying trends over the past four years. The gross profit margin has remained consistently high at 100% across all years, indicating effective management of production costs.
The operating profit margin shows improvement from 2020 to 2023, increasing from a low of -2.83% to 6.35%. This suggests better cost management and operational efficiency during this period.
The pretax margin also demonstrates positive growth, showing a steady increase from 2020 to 2023, reaching 9.78%. This indicates higher profitability before accounting for taxes, reflecting improved financial performance over the years.
However, the net profit margin fluctuates, with negative margins in 2021 and 2022, turning positive in 2023 at 6.51%. This indicates that the company faced challenges in generating profits after accounting for all expenses in 2021 and 2022, but managed to improve profitability in 2023.
Overall, Constellation Energy Corporation's profitability ratios show a positive trajectory in recent years, with improvements in operating and pretax margins, although fluctuations in net profit margins suggest some volatility in bottom-line profitability. Continued monitoring of these ratios will be important to assess the company's financial health and performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.17% | 1.06% | -0.72% |
| Return on assets (ROA) | 3.20% | -0.34% | -0.43% |
| Return on total capital | 15.81% | -1.92% | 1.91% |
| Return on equity (ROE) | 14.86% | -1.45% | -1.83% |
Constellation Energy Corporation's profitability ratios have shown significant fluctuations over the past four years.
1. Operating return on assets (Operating ROA) has improved consistently, with a notable increase from 1.05% in 2022 to 3.12% in 2023, indicating that the company has become more efficient in generating profits from its assets.
2. Return on assets (ROA) has also shown a positive trend over the past two years, moving from negative figures in 2021 and 2022 to 3.20% in 2023. This suggests that the company has been able to generate higher profits relative to its total assets.
3. Return on total capital has exhibited a similar positive trajectory, increasing from -2.87% in 2021 to 7.79% in 2023. This indicates that Constellation Energy Corporation has been more effective in utilizing both debt and equity capital to generate returns.
4. Return on equity (ROE) experienced significant improvement in 2023 compared to the negative figures in 2021 and 2022, reaching 14.86%. This indicates that the company has been able to deliver higher returns to its equity shareholders.
Overall, the improvement in profitability ratios, particularly in 2023, suggests that Constellation Energy Corporation has made efforts to enhance its operational efficiency and profitability, which may be reflective of effective management decision-making and operational performance.