DTE Energy Company (DTE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | -174.69% | -308.82% | -8.54% | -13.79% | -14.35% |
| Operating profit margin | 513.76% | 507.47% | 9.09% | 9.99% | 12.77% |
| Pretax margin | 336.61% | 354.30% | 5.78% | 5.19% | 11.54% |
| Net profit margin | 344.96% | 316.06% | 5.63% | 6.06% | 11.23% |
DTE Energy Company's profitability ratios exhibit fluctuations over the period from December 31, 2020, to December 31, 2024. The gross profit margin, representing the proportion of revenue remaining after deducting the cost of goods sold, shows a negative trend, deteriorating from -14.35% in 2020 to -174.69% in 2024, indicating challenges in cost management or pricing strategies.
On the other hand, the operating profit margin, which reflects the company's ability to generate profits from its core operations before interest and taxes, demonstrates a more favorable trajectory, increasing from 12.77% in 2020 to 513.76% in 2024. This improvement suggests enhanced operational efficiency and cost control measures.
Similarly, the pretax margin, representing the percentage of each dollar of revenue that results in pre-tax profit, shows inconsistency, with a significant surge from 5.19% in 2021 to 354.30% in 2023, before slightly decreasing to 336.61% in 2024. This fluctuation may indicate varying levels of tax efficiency and non-operating income across the years.
Lastly, the net profit margin, indicating the company's profitability after all expenses have been deducted, showcases a mixed performance, rising from 6.06% in 2021 to 344.96% in 2024. This upward trend suggests a noteworthy improvement in bottom-line profitability, potentially driven by operational enhancements or financial strategies.
Overall, while DTE Energy Company has experienced challenges in maintaining a positive gross profit margin, its operating, pre-tax, and net profit margins have shown improvements over the period, reflecting a combination of operational efficiencies and financial management strategies.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.28% | 5.01% | 4.10% | 3.76% | 3.42% |
| Return on assets (ROA) | 2.87% | 3.12% | 2.54% | 2.28% | 3.01% |
| Return on total capital | 6.90% | 7.70% | 6.30% | 5.39% | 6.30% |
| Return on equity (ROE) | 12.00% | 12.64% | 10.42% | 10.42% | 11.01% |
DTE Energy Company's profitability ratios indicate a fluctuating performance over the past five years.
- Operating return on assets (Operating ROA) has shown an increasing trend, starting at 3.42% in 2020 and peaking at 5.01% in 2023, before slightly declining to 4.28% in 2024. This metric reflects the company's ability to generate operating profits from its total assets.
- Return on assets (ROA) has been more volatile, with a lower range compared to Operating ROA. It dropped from 3.01% in 2020 to 2.28% in 2021, before slowly recovering to 3.12% in 2023, then falling slightly to 2.87% in 2024. ROA indicates DTE Energy's overall ability to generate profits from its assets, including non-operating income.
- Return on total capital has shown a similar fluctuating pattern, initially at 6.30% in 2020, dipping to 5.39% in 2021, then rising to 7.70% in 2023, before settling at 6.90% in 2024. This ratio considers the company's ability to generate returns from both debt and equity investments.
- Return on equity (ROE) has been relatively stable, ranging from 10.42% in 2021 to a peak of 12.64% in 2023, subsequently decreasing to 12.00% in 2024. ROE highlights the company's profitability in relation to its shareholders' equity, demonstrating how effectively it utilizes shareholders' investments to generate profits.
Overall, while DTE Energy Company has shown some variability in its profitability ratios, efforts should be made to sustain and potentially enhance these measures to ensure continued financial health and value creation for stakeholders.