Consolidated Edison Inc (ED)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 64.83% | 67.05% | 60.79% | 60.14% | 66.82% |
| Operating profit margin | 21.80% | 16.75% | 20.66% | 21.67% | 21.28% |
| Pretax margin | 20.50% | 13.77% | 11.23% | 9.73% | 13.03% |
| Net profit margin | 17.18% | 10.59% | 9.84% | 8.99% | 10.68% |
Consolidated Edison, Inc.'s profitability ratios reflect varying trends over the past five years. The gross profit margin has shown fluctuations, decreasing slightly from 2019 to 2020 but then recovering in the following years. It remained relatively high, indicating efficient cost management in generating revenue.
The operating profit margin exhibited a declining trend from 2019 to 2023, suggesting increasing operating expenses as a percentage of revenue. This may indicate challenges in controlling costs or optimizing operational efficiency.
The pretax margin fluctuated notably, with a significant increase from 2019 to 2020, followed by a decrease in the subsequent years. This indicates fluctuations in pre-tax profitability, potentially influenced by changes in tax expenses, non-operating income, or other factors impacting earnings before taxes.
The net profit margin also saw fluctuations, with an overall increasing trend from 2019 to 2023. This indicates that after accounting for all expenses, including taxes, the company's profitability has improved over the years. However, it is essential to assess the sustainability of this trend and understand the drivers behind these improvements.
In summary, while the gross profit margin remained relatively stable and high, Consolidated Edison, Inc. experienced fluctuations in the operating profit margin, pretax margin, and net profit margin over the past five years. Further analysis of the company's cost structure, revenue sources, and operational efficiency may provide additional insights into its profitability performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.82% | 3.80% | 4.48% | 4.22% | 4.61% |
| Return on assets (ROA) | 3.80% | 2.40% | 2.13% | 1.75% | 2.31% |
| Return on total capital | 9.34% | 6.98% | 5.72% | 5.63% | 7.20% |
| Return on equity (ROE) | 11.91% | 8.02% | 6.72% | 5.84% | 7.45% |
Consolidated Edison, Inc.'s profitability ratios show some fluctuations over the past five years.
- Operating return on assets (Operating ROA) has decreased gradually from 4.61% in 2019 to 3.51% in 2023. This ratio indicates the company's ability to generate profits from its operational assets, and the decline may suggest challenges in maximizing profitability from its asset base.
- Return on assets (ROA) increased from 2.31% in 2019 to 3.80% in 2023. This ratio measures overall profitability from all assets, including non-operating assets. The improvement indicates that the company is becoming more efficient in generating profits from its total asset base.
- Return on total capital decreased from 6.74% in 2019 to 5.11% in 2023. This ratio assesses the company's ability to generate returns for both equity and debt investors. The decline suggests a decrease in returns on the total invested capital over the years.
- Return on equity (ROE) shows fluctuations, with an increase from 7.45% in 2019 to 11.91% in 2023. This ratio measures the returns generated for shareholders' equity. The upward trend indicates an improvement in profitability for the company's equity investors.
In summary, Consolidated Edison, Inc. has shown mixed performance in terms of profitability ratios over the past five years. While some ratios have shown improvements, others have experienced fluctuations or declines, indicating the company's varying levels of efficiency and profitability in utilizing its assets and capital.