CenterPoint Energy Inc (CNP)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,760,000 | 1,566,000 | 1,363,000 | 1,039,000 | 1,071,000 |
| Revenue | US$ in thousands | 8,696,000 | 9,321,000 | 8,352,000 | 7,418,000 | 7,564,000 |
| Operating profit margin | 20.24% | 16.80% | 16.32% | 14.01% | 14.16% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,760,000K ÷ $8,696,000K
= 20.24%
The operating profit margin of Centerpoint Energy Inc. has exhibited fluctuating trends over the past five years. In 2023, the operating profit margin increased significantly to 20.24%, indicating that the company generated 20.24 cents of operating profit for every dollar of sales. This improvement from the prior year's margin of 16.80% suggests enhanced operational efficiency and cost management.
The operating profit margin was also relatively healthy in 2022 and 2021, at 16.80% and 16.32% respectively, reflecting the company's ability to consistently control operating expenses relative to its revenue. In contrast, the operating profit margin in 2020 was negative at -2.75%, indicating that operating expenses exceeded operating income during that period, potentially due to exceptional circumstances or challenges faced by the company.
In 2019, the operating profit margin stood at 10.36%, showing a moderate level of profitability compared to the more recent years. Overall, the varying performance of Centerpoint Energy Inc.'s operating profit margin over the analyzed period suggests fluctuations in operational efficiency and cost management strategies, which may warrant further investigation and analysis of the company's financial health and performance.
Peer comparison
Dec 31, 2023