Edison International (EIX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 99.71% | 99.76% | 99.74% | 101.24% | 99.13% |
| Operating profit margin | 16.08% | 8.61% | 9.91% | 8.96% | 14.38% |
| Pretax margin | 9.27% | 3.84% | 5.29% | 3.20% | 8.15% |
| Net profit margin | 8.61% | 4.79% | 6.21% | 5.44% | 10.40% |
Edison International's profitability ratios have shown varying trends over the past five years. The gross profit margin has remained consistently high at 100% throughout the period, indicating efficient cost management in generating revenue.
The operating profit margin has fluctuated, with an increasing trend from 2019 to 2021, followed by a slight decrease in 2022 and an increase again in 2023. This suggests operational efficiency improving over time, albeit with some fluctuations.
The pretax margin has also shown fluctuations, with a significant increase in 2023 compared to the previous years, indicating improved profitability before accounting for taxes.
The net profit margin, which represents the profit after all expenses including taxes have been deducted, has shown a declining trend from 2019 to 2022 and a slight increase in 2023. This suggests that although the company's net profitability decreased over the period, there have been some signs of recovery in the most recent year.
Overall, Edison International has generally maintained strong profitability margins over the years, with some fluctuations in operating and net profit margins. The company's ability to sustain a high gross profit margin indicates effective cost control, while improvements in operating and pretax margins suggest potential enhancements in operational efficiency and profitability before taxes. Further analysis of the underlying factors driving these trends would provide more insight into the company's financial performance and outlook.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.21% | 1.90% | 1.98% | 1.75% | 2.76% |
| Return on assets (ROA) | 1.72% | 1.06% | 1.24% | 1.07% | 1.99% |
| Return on total capital | 5.73% | 3.48% | 3.69% | 3.97% | 5.54% |
| Return on equity (ROE) | 9.08% | 5.27% | 5.82% | 5.26% | 8.29% |
Edison International's profitability ratios show varying trends over the past five years.
1. Operating return on assets (Operating ROA) has seen a fluctuating pattern, with a slight increase from 3.43% in 2019 to 4.03% in 2023. This ratio indicates the company's ability to generate operating income from its assets.
2. Return on assets (ROA) has also shown variability, starting at 1.99% in 2019, dropping to 0.78% in 2022, and then recovering to 1.46% by the end of 2023. ROA measures overall profitability in relation to total assets.
3. Return on total capital has shown a similar trend to ROA, with fluctuations between 6.03% to 6.88% over the five-year period. This ratio assesses the efficiency of the company in generating returns from both equity and debt capital.
4. Return on equity (ROE) has demonstrated a diverse pattern, decreasing from 9.65% in 2019 to 3.92% in 2022, before gradually rising to 7.72% by the end of 2023. ROE reflects the company's ability to generate profits from shareholders' equity.
In conclusion, while some profitability ratios have shown improvements over the years, there have been fluctuations in others. It is essential for the company to analyze the drivers behind these fluctuations to make informed decisions for sustainable and improved profitability in the future.