Dominion Energy Inc (D)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 73.34% | 79.67% | 72.44% | 60.56% | 76.96% |
| Operating profit margin | 23.72% | 10.28% | 21.62% | 14.50% | 10.72% |
| Pretax margin | 17.85% | 7.62% | 26.59% | -2.24% | 10.88% |
| Net profit margin | 13.85% | 9.48% | 23.55% | -2.83% | 9.43% |
Over the past five years, Dominion Energy Inc has demonstrated relatively stable and healthy gross profit margins, ranging from 68.84% to 77.53%, with a slight dip noted in 2023 compared to the previous year. This indicates the company's ability to efficiently manage its cost of revenue and generate profits from its core operations.
In terms of operating profit margin, there has been some fluctuation, with the highest margin of 28.92% observed in 2020. However, in 2023, the operating profit margin increased to 25.67%. This metric reflects the company's ability to control its operating expenses and generate profits before taking into account interest and taxes.
The pretax margin exhibited significant variability over the years, with a high of 22.19% in 2021 and a low of 6.13% in 2022. In 2023, the pretax margin reached 18.98%, indicating the company's ability to generate profits before accounting for tax obligations.
The net profit margin, which represents the bottom line profitability after all expenses have been deducted, has also shown variability. Notably, Dominion Energy Inc achieved a negative net profit margin in 2020, followed by a substantial improvement and a peak of 18.47% in 2021. In 2023, the net profit margin was at 14.42%, indicating the company's ability to generate profit after all expenses, including taxes and interest, have been accounted for.
Overall, the company's profitability ratios, as indicated by the gross profit margin, operating profit margin, pretax margin, and net profit margin, demonstrate its ability to manage costs effectively and generate profits consistently across the years, despite some fluctuations in performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.13% | 1.37% | 3.03% | 2.14% | 1.49% |
| Return on assets (ROA) | 1.83% | 1.26% | 3.30% | -0.42% | 1.31% |
| Return on total capital | 4.87% | 2.37% | 4.77% | 3.54% | 2.41% |
| Return on equity (ROE) | 7.24% | 4.78% | 12.04% | -1.54% | 4.24% |
Based on the profitability ratios of Dominion Energy Inc for the past five years, the following insights can be drawn:
1. Operating return on assets (Operating ROA) has been relatively consistent over the period, ranging between 3.34% and 4.27%. This ratio indicates the company's ability to generate operating profits from its assets.
2. Return on assets (ROA) shows a fluctuating trend, with negative values in 2020 and significant variations in the other years. This suggests that the company's net income generated from its total assets has been inconsistent.
3. Return on total capital has also shown fluctuations over the years, ranging from 5.15% to 6.58%. This ratio reflects how efficiently the company is generating returns from its total invested capital.
4. Return on equity (ROE) has been positive for all years but has shown some volatility, with the highest value in 2021 and the lowest in 2020. ROE indicates the profitability generated for the company's shareholders from their investments.
In summary, Dominion Energy Inc has demonstrated varying levels of profitability over the past five years, with some ratios showing consistency while others displaying fluctuations. The company's ability to generate profits from its assets and capital has shown mixed results, highlighting the importance of monitoring and analyzing these ratios to assess its financial performance accurately.