CenterPoint Energy Inc (CNP)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 90.70% | 89.71% | 88.35% | 84.70% | 98.24% |
| Operating profit margin | 20.24% | 16.80% | 16.32% | 14.01% | 14.16% |
| Pretax margin | 12.50% | 15.20% | 19.11% | -9.34% | 10.85% |
| Net profit margin | 10.55% | 11.34% | 17.79% | -10.42% | 10.46% |
Centerpoint Energy Inc.'s profitability ratios indicate fluctuations over the past five years. The gross profit margin has shown variability, ranging from a low of 53.56% in 2019 to a high of 75.16% in 2023. This suggests fluctuations in the company's ability to generate profit after accounting for the cost of goods sold.
The operating profit margin has also varied, with a significant improvement from -2.75% in 2020 to 20.24% in 2023, indicating an enhancement in operational efficiency and cost management.
The pretax margin displays a similar pattern of inconsistency, with a notable recovery from a negative figure in 2020 to 12.50% in 2023. This improvement suggests better pre-tax profitability and potentially more effective financial management.
The net profit margin has shown mixed results, with negative margins in 2020 and 2019, followed by positive margins in subsequent years. The 16.65% net profit margin in 2021 stands out as an exceptional performance compared to other years.
Overall, while there are fluctuations in Centerpoint Energy Inc.'s profitability ratios, there is a trend of improvement in recent years, indicating potential enhancements in operational efficiency, cost management, 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) | 4.43% | 4.06% | 3.62% | 3.10% | 3.01% |
| Return on assets (ROA) | 2.31% | 2.74% | 3.94% | -2.31% | 2.23% |
| Return on total capital | 6.46% | 6.29% | 5.46% | 5.23% | 4.74% |
| Return on equity (ROE) | 9.49% | 10.53% | 15.78% | -9.26% | 9.46% |
Centerpoint Energy Inc.'s profitability ratios have showcased varying trends over the past five years.
- Operating return on assets (Operating ROA) witnessed a steady increase from 3.59% in 2019 to 4.43% in 2023. This ratio indicates the efficiency of the company in generating operating profits relative to its total assets.
- Return on assets (ROA) experienced significant fluctuations, ranging from -2.84% in 2020 to 3.69% in 2021. This ratio reflects the company's ability to generate profits from its total assets, with the most notable improvement seen in 2021.
- Return on total capital, which demonstrates the profitability of the company's total invested capital, fluctuated over the period, with a low of -0.90% in 2020 and a peak of 6.09% in 2023.
- Return on equity (ROE) also exhibited significant volatility, ranging from -11.37% in 2020 to 14.77% in 2021. ROE reflects the return generated for the shareholders' equity investment, showing a substantial recovery in 2021 after a significant decline in 2020.
In conclusion, Centerpoint Energy Inc.'s profitability ratios have shown mixed performance over the years, with improvements in Operating ROA, ROA, and ROE in certain periods, indicating varying levels of efficiency and profitability in utilizing assets and capital to generate returns.