Dominion Energy Inc (D)
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% | 48.34% | 45.75% | 47.39% | 51.52% |
| Operating profit margin | 22.46% | 23.72% | 10.28% | 17.48% | 14.50% |
| Pretax margin | 2.15% | 18.98% | 3.87% | 16.46% | 9.96% |
| Net profit margin | 0.02% | 13.85% | 9.48% | 29.77% | -2.83% |
Based on the provided data for Dominion Energy Inc, we can analyze the profitability ratios for the years 2020 to 2024.
1. Gross Profit Margin:
- The gross profit margin shows the percentage of revenue that exceeds the cost of goods sold.
- Dominion Energy's gross profit margin has decreased from 51.52% in 2020 to 45.75% in 2022 but then increased significantly to 100.00% in 2024.
- A gross profit margin of 100.00% in 2024 may indicate a unique event like a one-off gain or a reversal of an impairment loss.
2. Operating Profit Margin:
- The operating profit margin indicates the percentage of revenue that remains after deducting operating expenses.
- Dominion Energy's operating profit margin fluctuated, increasing from 14.50% in 2020 to 17.48% in 2021, then dropping to 10.28% in 2022 before rising to 22.46% in 2024.
- The improvement in operating profit margin from 2022 to 2024 suggests better cost management or potentially increased revenue.
3. Pretax Margin:
- The pretax margin reflects the percentage of revenue remaining after deducting all expenses except taxes.
- Dominion Energy's pretax margin varied significantly, ranging from 9.96% in 2020 to 2.15% in 2024.
- The sharp decrease in the pretax margin in 2024 may raise concerns about the company's overall profitability or potentially indicate significant non-operating expenses affecting the bottom line.
4. Net Profit Margin:
- The net profit margin measures the percentage of revenue that translates into net income after all expenses, including taxes.
- Dominion Energy's net profit margin experienced substantial fluctuations, with a negative margin of -2.83% in 2020, followed by a significant improvement to 29.77% in 2021, and then declining to 0.02% in 2024.
- The significant swings in net profit margin highlight the company's changing profitability performance over the years, with potential one-time effects impacting the outcomes.
In conclusion, Dominion Energy's profitability ratios have shown varying trends over the years, indicating changes in cost structures, revenue generation, and potential one-off events that have influenced the company's overall profitability.It would be essential for stakeholders to analyze the underlying reasons for these fluctuations and assess the company's future sustainability and growth prospects.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.17% | 3.13% | 1.37% | 2.00% | 2.14% |
| Return on assets (ROA) | 0.00% | 1.83% | 1.27% | 3.41% | -0.42% |
| Return on total capital | 16.18% | 13.42% | 11.69% | 9.54% | 15.69% |
| Return on equity (ROE) | 0.01% | 7.24% | 4.74% | 12.45% | -1.54% |
Dominion Energy Inc's profitability ratios indicate fluctuations over the years.
1. Operating return on assets (Operating ROA) decreased from 2.14% in 2020 to 1.37% in 2022 before showing an improvement to 3.17% in 2024. This metric measures the company's operating profit generated per dollar of assets.
2. Return on assets (ROA) experienced significant variability, ranging from -0.42% in 2020 to 3.41% in 2021. ROA stood at 0.00% in 2024. ROA reflects the company's overall profitability by showing how efficiently it utilizes its assets to generate profit.
3. Return on total capital ranged from 9.54% in 2021 to 16.18% in 2024. This metric indicates the return generated from all capital invested in the business, both equity and debt.
4. Return on equity (ROE) had a notable increase from -1.54% in 2020 to 12.45% in 2021 but declined in the following years. ROE stood at 0.01% in 2024, reflecting the return earned on shareholders' equity investment.
Overall, while Dominion Energy Inc showed fluctuations in profitability ratios, it is essential to evaluate these metrics in conjunction with other financial indicators to gain a comprehensive understanding of the company's financial performance.