Edison International (EIX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 41.09% | 35.55% | 38.38% | 37.10% |
| Operating profit margin | 16.65% | 16.08% | 8.61% | 9.91% | 8.96% |
| Pretax margin | 8.88% | 9.27% | 3.84% | 5.29% | 4.17% |
| Net profit margin | 8.78% | 8.61% | 4.79% | 6.21% | 6.41% |
Edison International's profitability ratios have shown some fluctuations over the years based on the provided data.
Firstly, the gross profit margin increased from 37.10% in December 2020 to 100.00% in December 2024, which is a significant improvement, possibly due to efficiency gains or changes in the business model.
The operating profit margin also saw growth, rising from 8.96% in December 2020 to 16.65% in December 2024. This indicates that the company's operating efficiency and cost management improved over the years.
Similarly, the pretax margin increased from 4.17% in December 2020 to 8.88% in December 2024, reflecting an increasing profitability before accounting for taxes.
Lastly, the net profit margin, which represents the company's bottom line profitability, fluctuated but generally showed positive trends. It was 6.41% in December 2020, decreased to 4.79% in December 2022, then increased to 8.78% in December 2024. This implies that the company was able to effectively manage its expenses and generate higher profits relative to its revenues in the most recent year.
Overall, the improving trend in profitability margins indicates that Edison International has been successfully managing its costs, increasing operational efficiency, and generating higher profits over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.28% | 3.21% | 1.90% | 1.98% | 1.75% |
| Return on assets (ROA) | 7.01% | 1.72% | 1.06% | 1.24% | 1.26% |
| Return on total capital | 22.05% | 20.17% | 11.72% | 10.79% | 10.45% |
| Return on equity (ROE) | 9.93% | 9.08% | 5.27% | 5.82% | 6.20% |
Edison International's profitability ratios show improvement over the years, indicating effective management of assets and capital:
1. Operating return on assets (Operating ROA) has been relatively stable between 1.75% and 1.98% from 2020 to 2022 but saw a significant increase to 3.21% in 2023 and a substantial jump to 13.28% in 2024. This suggests that the company has been able to generate more operating income from its assets in recent years.
2. Return on assets (ROA) reflects a similar trend, with values increasing from 1.26% in 2020 to 7.01% in 2024. This indicates that the company has been able to generate higher net income relative to its total assets over the years.
3. The return on total capital has shown a consistent upward trend, increasing from 10.45% in 2020 to 22.05% in 2024. This indicates that the company has been able to generate higher returns on its total capital employed, which includes both debt and equity.
4. Return on equity (ROE) has also shown improvement, increasing from 6.20% in 2020 to 9.93% in 2024. This indicates that the company has been able to generate higher returns for its shareholders over the years.
Overall, the increasing profitability ratios suggest that Edison International has been successful in generating higher returns from its assets, capital, and equity, which is a positive indicator of its financial performance and efficiency.