Chesapeake Utilities Corporation (CPK)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 38.07% | 34.89% | 38.24% | 39.45% |
| Operating profit margin | 28.99% | 22.49% | 21.00% | 23.00% | 23.09% |
| Pretax margin | 20.55% | 17.19% | 18.16% | 19.77% | 19.29% |
| Net profit margin | 15.07% | 13.00% | 13.19% | 14.64% | 14.65% |
The profitability ratios of Chesapeake Utilities Corporation over the period from December 31, 2020, to December 31, 2024, show varying trends.
1. Gross Profit Margin: It decreased from 39.45% in 2020 to 34.89% in 2022, indicating a decline in the company's ability to generate profit from its core operations. However, there was a significant improvement in 2024 with a gross profit margin of 100.00%, potentially indicating an anomaly or a unique event that skewed this ratio.
2. Operating Profit Margin: The operating profit margin remained relatively stable, hovering around 23% from 2020 to 2023, before experiencing an increase to 28.99% in 2024. This suggests that the company effectively managed its operating expenses to maintain profitability and achieved a notable improvement in 2024.
3. Pretax Margin: The pretax margin fluctuated slightly, with a peak of 19.77% in 2021 and a low of 17.19% in 2023. The upward trend in 2024 to 20.55% indicates the company's ability to enhance profitability before accounting for taxes.
4. Net Profit Margin: The net profit margin also exhibited variations over the years, with a peak of 14.65% in 2020 and a low of 13.00% in 2023. The increase to 15.07% in 2024 suggests that the company managed to improve its bottom-line profitability.
In conclusion, Chesapeake Utilities Corporation witnessed fluctuations in profitability ratios during the period analyzed, with some ratios indicating improvement in profitability performance, notably in 2024. Monitoring these ratios over time can provide insights into the company's operational efficiency and overall financial health.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.38% | 4.56% | 6.45% | 6.20% | 5.83% |
| Return on assets (ROA) | 3.32% | 2.64% | 4.05% | 3.95% | 3.70% |
| Return on total capital | 16.56% | 12.26% | 17.16% | 17.16% | 16.12% |
| Return on equity (ROE) | 8.53% | 7.00% | 10.78% | 10.78% | 10.26% |
Chesapeake Utilities Corporation's profitability ratios show a generally positive trend over the years analyzed.
- Operating return on assets (Operating ROA) increased from 5.83% in 2020 to 6.38% in 2024, indicating a consistent improvement in the company's operating efficiency in generating profits from its assets.
- Return on assets (ROA) also exhibited an upward trend, rising from 3.70% in 2020 to 3.32% in 2024. Despite a slight dip in 2023, the company managed to maintain profitability levels relative to its total assets.
- Return on total capital remained relatively stable at around 16-17% from 2020 to 2024, indicating the company's ability to generate returns for both debt and equity holders over the years.
- Return on equity (ROE) showed a similar trend to ROA, with an increase from 10.26% in 2020 to 8.53% in 2024. While there was a decrease in 2023, the company's performance in generating profits for its equity shareholders improved overall.
Overall, Chesapeake Utilities Corporation's profitability ratios demonstrate a consistent performance in utilizing its assets and capital efficiently to generate returns for its stakeholders, despite some fluctuations in specific years.