Duke Energy Corporation (DUK)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 71.15% | 70.49% | 66.74% | 36.32% | 60.00% |
| Operating profit margin | 27.14% | 22.83% | 24.10% | 21.06% | 25.78% |
| Pretax margin | 12.59% | 10.82% | 18.30% | 5.57% | 19.27% |
| Net profit margin | 10.91% | 9.69% | 17.13% | 6.34% | 16.93% |
Duke Energy Corp.'s profitability ratios show fluctuations over the past five years. The gross profit margin has been relatively stable, hovering around the mid-60% range, indicating efficient cost management in generating revenue.
The operating profit margin has shown some variability but generally improved from 2019 to 2023. This suggests that the company has been able to control its operating expenses more effectively and increase profitability from its core operations.
The pretax margin has also demonstrated an upward trend, reaching 16.40% in 2023. This indicates that Duke Energy has been able to improve its efficiency in generating profits before accounting for taxes, which is a positive sign for overall financial health.
While the net profit margin saw significant fluctuations, it improved steadily over the years, reflecting that Duke Energy has managed to increase its bottom line profitability after accounting for all expenses. The 9.41% net profit margin in 2023 indicates the company's ability to convert revenue into profit is on a positive trajectory.
Overall, Duke Energy Corp. has shown improvements in its profitability ratios over the years, indicating effective cost management and operational efficiency in driving profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.00% | 3.38% | 3.24% | 2.81% | 3.59% |
| Return on assets (ROA) | 1.61% | 1.43% | 2.30% | 0.85% | 2.36% |
| Return on total capital | 5.18% | 4.59% | 5.82% | 3.19% | 6.36% |
| Return on equity (ROE) | 5.78% | 5.17% | 7.93% | 2.87% | 8.00% |
Duke Energy Corp.'s profitability ratios indicate a mixed performance over the past five years.
Starting with the Operating return on assets (Operating ROA), the company's performance has shown a slight increasing trend from 2019 to 2023, reaching 4.02% in 2023. This ratio signifies the company's ability to generate operating profits from its assets, and the increasing trend indicates improved operational efficiency.
Moving on to the Return on assets (ROA), Duke Energy Corp.'s performance has been relatively stable, with a slight fluctuation between 0.78% in 2020 to 2.33% in 2019. ROA measures the company's overall profitability in relation to its total assets, and the company's ability to generate profits has improved over the years.
The Return on total capital ratio also displays a positive trend, increasing from 3.18% in 2020 to 5.61% in 2023. This ratio evaluates the company's profitability in relation to its total invested capital, indicating an increasing return for the company's total capital employed.
Lastly, the Return on equity (ROE) ratio has shown some fluctuations, with a noticeable drop in 2020 to 2.65%. However, the ratio increased to 7.92% in 2019 but decreased to 5.57% in 2023. ROE measures the return earned on shareholders' equity and indicates the company's ability to generate profits for its equity shareholders.
Overall, Duke Energy Corp.'s profitability ratios depict improvements in operational efficiency and profitability over the years, with some fluctuations noted in certain ratios. Management should continue to monitor these ratios to ensure sustained profitability and efficiency in the company's operations.