CenterPoint Energy Inc (CNP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 46.00% | 42.39% | 36.44% | 38.40% | 39.49% |
| Operating profit margin | 23.02% | 20.24% | 16.80% | 16.32% | -2.26% |
| Pretax margin | 14.05% | 12.50% | 15.20% | 9.32% | -11.66% |
| Net profit margin | 11.79% | 10.55% | 11.34% | 8.00% | -7.97% |
CenterPoint Energy Inc's gross profit margin has fluctuated over the past five years, starting at 39.49% in December 2020 and declining to 36.44% by December 2022. However, there was a significant improvement in 2023 and 2024, with margins reaching 42.39% and 46.00%, respectively, indicating better cost management or revenue optimization.
The company's operating profit margin has shown a more consistent upward trend, moving from -2.26% in December 2020 to 23.02% by December 2024. This indicates improved operational efficiency and potentially better control over operating expenses.
Similarly, the pretax margin has shown overall improvement, increasing from -11.66% in December 2020 to 14.05% by December 2024. This suggests that CenterPoint Energy Inc has been able to generate more income before taxes relative to its revenue over the years.
The net profit margin, a key profitability metric, has also demonstrated growth, rising from -7.97% in December 2020 to 11.79% by December 2024. This indicates that the company has managed its expenses, taxes, and interest payments effectively to increase its bottom line profitability over the period analyzed.
In conclusion, CenterPoint Energy Inc has shown positive trends in its profitability ratios over the five-year period, with improvements in gross profit margin, operating profit margin, pretax margin, and net profit margin, reflecting enhanced operational efficiency and profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.55% | 4.43% | 4.06% | 3.62% | -0.50% |
| Return on assets (ROA) | 2.33% | 2.31% | 2.74% | 1.77% | -1.77% |
| Return on total capital | 19.24% | 18.50% | 19.32% | 13.88% | 13.08% |
| Return on equity (ROE) | 9.55% | 9.49% | 10.52% | 7.10% | -7.08% |
CenterPoint Energy Inc's profitability ratios have shown an improving trend over the past five years.
Operating Return on Assets (Operating ROA) increased from -0.50% in December 2020 to 4.55% in December 2024, indicating that the company's operating income generated from its assets has been steadily improving.
Return on Assets (ROA) also exhibited positive growth, rising from -1.77% in December 2020 to 2.33% in December 2024. This ratio signifies the company's ability to generate profits from its total assets, with the upward trend reflecting efficient asset utilization.
Return on Total Capital saw significant improvement, climbing from 13.08% in December 2020 to 19.24% in December 2024. This ratio demonstrates the return earned on all capital invested in the business, including debt and equity, indicating an increasing ability to generate returns for both creditors and shareholders.
Return on Equity (ROE) showed a positive trajectory, increasing from -7.08% in December 2020 to 9.55% in December 2024. This ratio reflects the return generated for the company's shareholders from their equity investments, highlighting an enhancement in shareholder value over the years.
Overall, CenterPoint Energy Inc's profitability ratios have shown consistent improvement, suggesting positive financial performance and effective management of assets and capital.