Eversource Energy (ES)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 31.12% | 34.82% | 34.75% | 34.03% | 31.83% | 30.98% | 34.67% | 37.89% | 44.02% | 45.37% | 46.57% | 47.44% | 48.03% | 48.44% | 49.48% | 49.62% | 49.82% | 49.53% | 49.44% | 49.18% |
| Operating profit margin | 22.74% | 22.54% | 22.35% | 21.80% | 20.14% | 19.30% | 18.86% | 18.11% | 17.89% | 18.30% | 18.88% | 19.65% | 20.15% | 20.48% | 21.55% | 21.75% | 22.33% | 22.58% | 22.42% | 19.27% |
| Pretax margin | 10.45% | -2.24% | 1.47% | -2.03% | -2.31% | 12.29% | 12.52% | 15.29% | 15.18% | 15.31% | 15.55% | 15.86% | 15.90% | 16.16% | 17.17% | 17.23% | 17.51% | 17.72% | 17.42% | 14.43% |
| Net profit margin | 6.82% | -4.73% | -0.81% | -3.60% | -3.71% | 9.52% | 9.28% | 11.52% | 11.43% | 11.85% | 12.06% | 12.32% | 12.34% | 12.30% | 13.11% | 13.22% | 13.53% | 13.57% | 13.51% | 11.02% |
The profitability ratios of Eversource Energy have shown fluctuations over the periods analyzed.
1. Gross Profit Margin:
- The gross profit margin, which measures the proportion of revenue that exceeds the cost of goods sold, has been generally declining from 49.18% in March 2020 to 31.12% in December 2024. This indicates a reduction in the company's efficiency in generating profits after accounting for the direct costs of production.
2. Operating Profit Margin:
- The operating profit margin, representing the proportion of revenue remaining after deducting operating expenses, has also experienced fluctuations. It ranged from 19.27% in March 2020 to 22.74% in December 2024. Although there were fluctuations, the operating profit margin generally improved towards the end of the period.
3. Pretax Margin:
- The pretax margin, reflecting the percentage of revenue remaining after deducting all operating expenses except for taxes, showed significant variability. It ranged from -2.31% in December 2023 to 17.72% in September 2020. The negative pretax margins in some periods indicate that the company incurred expenses that exceeded its revenue.
4. Net Profit Margin:
- The net profit margin, which indicates the percentage of revenue that results in net income after all expenses, including taxes, has also displayed fluctuations. It ranged from -3.71% in December 2023 to 13.57% in September 2020. The negative net profit margins in certain periods suggest that the company experienced losses.
Overall, Eversource Energy's profitability ratios show a mixed performance over the analyzed periods, with certain margins improving while others deteriorated. It is essential for the company to monitor and address the factors influencing these ratios to ensure sustainable profitability in the future.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.54% | 4.47% | 4.35% | 4.35% | 4.31% | 4.20% | 4.38% | 4.22% | 4.13% | 4.16% | 4.16% | 4.20% | 4.11% | 4.11% | 4.35% | 4.38% | 4.31% | 4.53% | 4.56% | 3.93% |
| Return on assets (ROA) | 1.36% | -0.94% | -0.16% | -0.72% | -0.80% | 2.07% | 2.16% | 2.68% | 2.64% | 2.70% | 2.65% | 2.63% | 2.52% | 2.47% | 2.64% | 2.66% | 2.61% | 2.72% | 2.75% | 2.25% |
| Return on total capital | 15.66% | 2.94% | 7.71% | 4.67% | 4.09% | 15.06% | 15.43% | 17.11% | 16.74% | 15.97% | 15.41% | 15.30% | 14.76% | 14.74% | 15.29% | 15.13% | 14.91% | 14.89% | 14.69% | 13.33% |
| Return on equity (ROE) | 5.40% | -2.04% | -0.62% | -2.83% | -3.12% | 7.44% | 7.56% | 9.22% | 9.08% | 9.11% | 8.80% | 8.75% | 8.36% | 8.23% | 8.73% | 8.69% | 8.57% | 8.46% | 8.37% | 7.08% |
Eversource Energy's profitability ratios show a mixed performance over the past few years. The operating return on assets (Operating ROA) has been relatively stable, ranging from 3.93% to 4.54% during the most recent reported period. This indicates that the company is generating profits from its operational activities efficiently.
On the other hand, the return on assets (ROA) and return on equity (ROE) ratios display more fluctuation. The ROA ratio fluctuated significantly, from a high of 2.75% to a low of -0.94%, indicating varying levels of profitability relative to its total assets. The ROE ratio also showed fluctuations, ranging from a positive 8.80% to a negative -3.12%, reflecting the equity holders' returns on their investment in the company.
The return on total capital ratio has shown a more consistent performance, starting at 13.33% and gradually increasing to 15.66% by the end of the reported period. This suggests that the company is effectively utilizing its total capital to generate returns for both debt and equity holders.
In summary, Eversource Energy's profitability ratios indicate a mix of stable operational efficiency and fluctuating returns on assets and equity. It is important for the company to focus on sustaining and improving these ratios to ensure long-term profitability and value creation for its investors.