DT Midstream Inc (DTM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Gross profit margin | 75.05% | 76.63% | 75.95% |
| Operating profit margin | 51.08% | 51.96% | 47.86% |
| Pretax margin | 52.93% | 51.09% | 48.93% |
| Net profit margin | 41.65% | 40.22% | 36.55% |
DT Midstream Inc has demonstrated consistent and high levels of profitability over the past four years, as indicated by its gross profit margin of 100% in each year. This implies that the company is efficiently managing its cost of goods sold and generating a significant gross profit from its operations.
In terms of operating profit margin, DT Midstream Inc's performance has been relatively stable, with a slight increase from 49.46% in 2022 to 50.65% in 2023. This ratio reflects the company's ability to control its operating expenses and generate profits from its core business activities.
The pretax margin of DT Midstream Inc has shown some fluctuations over the years, with a peak of 58.36% in 2020 and a dip to 50.24% in 2021 before recovering to 54.23% in 2023. This ratio indicates the company's ability to generate profits before accounting for taxes, reflecting both operational efficiency and the impact of non-operational items on profitability.
The net profit margin, which represents the percentage of revenue that translates into net income, has also exhibited a generally positive trend for DT Midstream Inc. Despite some variability, the company has maintained healthy levels of net profit margin, ranging from 36.55% in 2021 to 41.65% in 2023. This suggests that DT Midstream Inc is effectively managing its expenses and maximizing its bottom-line profitability.
Overall, based on the profitability ratios analyzed, DT Midstream Inc appears to be a financially sound company with strong profitability performance and effective cost management practices.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.24% | 5.41% | 4.92% |
| Return on assets (ROA) | 4.28% | 4.19% | 3.76% |
| Return on total capital | 8.86% | 8.59% | 7.57% |
| Return on equity (ROE) | 9.28% | 9.23% | 7.93% |
DT Midstream Inc has shown consistent improvement in its profitability ratios over the past four years.
The Operating Return on Assets (Operating ROA) has seen a slight upward trend from 4.94% in 2020 to 5.20% in 2023, indicating that the company is effectively generating operating profits from its assets.
Similarly, the Return on Assets (ROA) has also increased steadily from 3.74% in 2020 to 4.28% in 2023, reflecting the company's ability to generate profits relative to its total assets.
The Return on Total Capital has shown a positive growth trajectory, indicating an improvement in the overall efficiency of capital utilization. It has increased from 7.17% in 2020 to 8.74% in 2023.
Moreover, the Return on Equity (ROE) has demonstrated consistent growth over the years, showcasing the company's ability to generate profits for its shareholders. The ROE has increased from 7.66% in 2020 to 9.28% in 2023.
Overall, DT Midstream Inc's profitability ratios depict a positive trend, reflecting the company's effective use of assets, capital, and equity to generate profits.