Eversource Energy (ES)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 52.58% | 87.33% | 86.91% | 89.55% | 86.85% | 86.13% | 86.01% | 86.28% | 86.80% | 86.81% | 86.75% | 86.58% | 86.93% | 90.64% | 90.62% | 87.52% | 88.11% | 88.08% | 88.50% | 91.76% |
| Operating profit margin | 20.14% | 19.30% | 18.86% | 18.11% | 17.89% | 18.30% | 18.93% | 19.71% | 20.21% | 20.54% | 21.55% | 21.75% | 22.33% | 22.59% | 22.42% | 19.27% | 18.65% | 18.27% | 17.56% | 20.43% |
| Pretax margin | -2.26% | 12.29% | 12.52% | 15.29% | 15.18% | 15.31% | 15.59% | 15.91% | 15.94% | 16.21% | 17.17% | 17.23% | 17.51% | 17.72% | 17.42% | 14.43% | 13.96% | 13.64% | 12.98% | 15.95% |
| Net profit margin | -3.60% | 9.59% | 9.34% | 11.58% | 11.49% | 11.91% | 12.16% | 12.42% | 12.45% | 12.41% | 13.19% | 13.30% | 13.62% | 13.65% | 13.60% | 11.11% | 10.75% | 10.55% | 10.09% | 12.59% |
Based on the provided data, the profitability ratios of Eversource Energy show a fluctuating trend over the past eight quarters.
1. Gross Profit Margin: The gross profit margin has been relatively stable, ranging from 54.63% to 61.15%. A slight decrease is noticeable in the latest quarter, Q4 2023, with a gross profit margin of 56.61%. This margin indicates that Eversource Energy is effectively managing its production and distribution costs to generate profit.
2. Operating Profit Margin: The operating profit margin has also shown consistency, hovering around 18%-20% over the quarters. The most recent quarter, Q4 2023, saw a slight increase compared to the prior quarter, reaching 20.14%. This margin reflects the company's ability to control its operating expenses while maintaining profitability.
3. Pretax Margin: The pretax margin displays more variability, with significant fluctuations observed over the quarters. In Q4 2023, the pretax margin was negative at -2.31%, indicating that the company incurred losses before taxes during that period. However, the previous quarters generally showed positive pretax margins ranging from 12.29% to 15.91%.
4. Net Profit Margin: The net profit margin, which represents the company's profitability after all expenses have been deducted, also displays variability. The trend shows a decrease in the net profit margin from 12.35% in Q1 2022 to -3.71% in Q4 2023. This indicates that, despite maintaining positive margins in most quarters, the company experienced a loss in profitability in the most recent quarter.
Overall, while Eversource Energy has demonstrated consistent performance in managing its operating and gross profit margins, the fluctuating pretax and net profit margins suggest a need for further analysis to understand the factors contributing to the recent decline in profitability.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 3.87% | 3.91% | 3.88% | 4.50% |
| Return on assets (ROA) | -0.77% | 2.09% | 2.17% | 2.70% | 2.65% | 2.71% | 2.67% | 2.65% | 2.53% | 2.49% | 2.66% | 2.67% | 2.63% | 2.74% | 2.77% | 2.26% | 2.23% | 2.26% | 2.23% | 2.77% |
| Return on total capital | 5.99% | 6.13% | 6.30% | 7.29% | 7.23% | 6.95% | 6.70% | 6.93% | 6.81% | 6.68% | 7.25% | 7.42% | 7.19% | 7.25% | 7.37% | 6.50% | 6.53% | 6.60% | 6.53% | 7.85% |
| Return on equity (ROE) | -3.03% | 7.48% | 7.61% | 9.27% | 9.13% | 9.16% | 8.85% | 8.80% | 8.41% | 8.28% | 8.78% | 8.74% | 8.62% | 8.52% | 8.43% | 7.14% | 7.26% | 7.41% | 7.26% | 9.28% |
The profitability ratios of Eversource Energy show fluctuations over the past eight quarters.
1. Operating return on assets (Operating ROA) has been relatively stable, ranging from 4.13% to 4.38%. This ratio indicates the company's ability to generate profits from its assets before interest and taxes.
2. Return on assets (ROA) has shown more variation, with values ranging from -0.80% to 2.68%. A negative ROA in Q4 2023 is concerning, as it suggests that the company has incurred losses relative to its total assets in that period.
3. Return on total capital has also fluctuated, with values between 5.66% and 5.92%. This ratio reflects the company's ability to generate profits from both debt and equity capital invested in the business.
4. Return on equity (ROE) has varied significantly, with a wide range of values from -3.12% to 9.22%. The negative ROE in Q4 2023 is particularly noteworthy as it indicates a loss on the shareholders' equity during that quarter.
Overall, Eversource Energy's profitability ratios exhibit mixed performance, with some ratios showing stability while others demonstrate more volatility and fluctuations. Further analysis and investigation may be needed to understand the reasons behind the fluctuations in profitability.