DTE Energy Company (DTE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -10.71% | -8.54% | -13.79% | -14.35% | -9.95% |
| Operating profit margin | 17.60% | 9.09% | 9.99% | 12.77% | 11.29% |
| Pretax margin | 12.29% | 5.78% | 5.19% | 11.54% | 9.79% |
| Net profit margin | 10.96% | 5.63% | 6.06% | 11.23% | 9.23% |
DTE Energy Co.'s profitability ratios provide insights into its ability to generate profits from its operations over the past five years. The gross profit margin fluctuated significantly, with a steep decline in 2021 followed by a sharp increase in 2022 and a more normalized figure in 2023. This indicates changes in the company's cost structure and pricing strategies.
The operating profit margin shows a mixed performance, with fluctuations over the years. Despite a slight decrease in 2023 compared to 2022, the margin remained relatively stable, indicating the company's ability to control its operating expenses and generate profits from core operations.
The pretax margin also exhibited fluctuations, with a significant increase in 2023 compared to the previous year. This suggests variations in the impact of non-operating factors such as interest expenses or one-time gains/losses on the company's overall profitability.
The net profit margin reflects the company's bottom line performance after accounting for all expenses, taxes, and other factors. DTE Energy Co. demonstrated a moderate increase in 2023 compared to 2022, indicating improved efficiency in managing its costs and taxes to enhance profitability.
Overall, DTE Energy Co. has shown resilience in maintaining profitability levels despite fluctuations in individual ratios, showcasing its ability to adapt to changing business environments and continue generating returns for its stakeholders.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.01% | 4.10% | 3.76% | 3.42% | 3.38% |
| Return on assets (ROA) | 3.12% | 2.54% | 2.28% | 3.01% | 2.77% |
| Return on total capital | 7.70% | 6.30% | 5.39% | 6.30% | 6.39% |
| Return on equity (ROE) | 12.64% | 10.42% | 10.42% | 11.01% | 10.02% |
DTE Energy Co.'s profitability ratios generally show positive trends over the past five years. The operating return on assets (Operating ROA) has increased steadily from 4.11% in 2019 to 5.05% in 2023, indicating an improvement in the company's ability to generate operating income from its assets.
The Return on Assets (ROA) has also shown an upward trend over the same period, though it fluctuated slightly, with a notable increase from 2.79% in 2019 to 3.11% in 2023. This indicates that the company's overall profitability in relation to its total assets has improved.
The Return on Total Capital has shown a consistent upward trajectory, reaching 7.09% in 2023 from 6.29% in 2019. This suggests that the company has been effectively utilizing both debt and equity to generate returns for its capital providers.
Lastly, the Return on Equity (ROE) has also shown a positive trend, increasing steadily from 10.00% in 2019 to 12.62% in 2023. This indicates that the company has been able to deliver higher returns to its shareholders over the years, reflecting a strong financial performance and efficient use of shareholder equity.
Overall, DTE Energy Co. has demonstrated improved profitability over the years, as indicated by the upward trends in its profitability ratios.