Duke Energy Corporation (DUK)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 98.14% | 47.34% | 45.11% | 48.19% | 48.59% |
| Operating profit margin | 26.11% | 24.33% | 20.90% | 21.41% | 19.56% |
| Pretax margin | 17.11% | 16.40% | 14.18% | 15.00% | 3.94% |
| Net profit margin | 14.90% | 9.78% | 8.86% | 14.26% | 5.89% |
The profitability ratios of Duke Energy Corporation have shown some fluctuations over the years. The gross profit margin, which indicates the percentage of revenue retained after covering production costs, was reasonably stable around the 45-48% range from 2020 to 2023 but experienced a significant increase to 98.14% by the end of 2024.
The operating profit margin, reflecting the efficiency of the company's core operations in generating profits, generally improved from 19.56% in 2020 to 26.11% in 2024, indicating the company's ability to control its operating expenses.
The pretax margin, representing the company's profitability before accounting for taxes, also displayed a positive trend over the years, increasing from 3.94% in 2020 to 17.11% in 2024, signifying an enhancement in the company's overall financial performance.
Lastly, the net profit margin, which measures the portion of revenue remaining as net income after all expenses are deducted, fluctuated between 5.89% and 14.90% from 2020 to 2024, showcasing some variability in Duke Energy's bottom-line profitability.
Overall, the profitability ratios of Duke Energy Corporation portray a mixed performance, with improvements in operating and pretax margins, a notable spike in gross profit margin in 2024, and some variability in the net profit margin over the five-year period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.25% | 4.00% | 3.38% | 3.17% | 2.81% |
| Return on assets (ROA) | 2.43% | 1.61% | 1.43% | 2.11% | 0.85% |
| Return on total capital | 17.11% | 14.67% | 13.30% | 12.94% | 11.37% |
| Return on equity (ROE) | 9.03% | 5.78% | 5.17% | 7.26% | 2.87% |
Based on the provided data for Duke Energy Corporation, the profitability ratios show an improving trend over the years:
1. Operating Return on Assets (Operating ROA):
- Increased from 2.81% in 2020 to 4.25% in 2024, indicating that the company's operating efficiency in generating profits from its assets has been steadily improving.
2. Return on Assets (ROA):
- Showed fluctuations but generally increased from 0.85% in 2020 to 2.43% in 2024, signifying that the company has become more effective in generating profits relative to its total assets.
3. Return on Total Capital:
- Steadily increased from 11.37% in 2020 to 17.11% in 2024, reflecting the company's ability to generate returns from both equity and debt capital.
4. Return on Equity (ROE):
- Demonstrated a significant growth from 2.87% in 2020 to 9.03% in 2024, indicating an enhancement in the company's ability to generate profits for its shareholders relative to the equity invested.
Overall, the profitability ratios of Duke Energy Corporation illustrate a positive trend of increasing returns and profitability over the analyzed period, showcasing the company's efficiency in utilizing its assets and capital to generate earnings for its stakeholders.