CenterPoint Energy Inc (CNP)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 917,000 | 1,057,000 | 1,486,000 | -773,000 | 791,000 |
| Revenue | US$ in thousands | 8,696,000 | 9,321,000 | 8,352,000 | 7,418,000 | 7,564,000 |
| Net profit margin | 10.55% | 11.34% | 17.79% | -10.42% | 10.46% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $917,000K ÷ $8,696,000K
= 10.55%
Net profit margin is an important financial ratio that reflects a company's profitability by measuring how much of each dollar of revenue translates into profit after all expenses have been deducted.
Analyzing the net profit margin of Centerpoint Energy Inc. over the past five years provides valuable insights into the company's financial performance.
In 2019, the net profit margin stood at 5.48%, indicating that the company generated a profit of approximately 5.48 cents for every dollar of revenue earned. The increase in the net profit margin to 16.65% in 2021 was a positive sign, showing an improvement in profitability efficiency. This could be attributed to effective cost management or revenue growth outpacing expenses during that year.
However, in 2020, the net profit margin dipped to -12.79%, indicating that the company incurred a net loss equivalent to 12.79% of its total revenue. A negative net profit margin is a concerning sign and suggests that the company's expenses exceeded its revenue during that period.
The net profit margin recovered in 2022, reaching 10.81%, which was an improvement compared to the previous year. However, in 2023, there was a slight decline in the net profit margin to 9.97%. While the margin remains positive, the decreasing trend could suggest potential challenges in maintaining profitability levels.
Overall, fluctuations in Centerpoint Energy Inc.'s net profit margin over the years highlight the company's ability to manage expenses and generate profit from its operations. Further analysis of the company's financial statements and business operations would be required to understand the factors driving these changes in profit margins.
Peer comparison
Dec 31, 2023