Entergy Corporation (ETR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Gross profit margin | 74.33% | 75.80% | 73.42% | 71.85% | 70.28% |
| Operating profit margin | 23.35% | 16.44% | 16.79% | 13.75% | 4.57% |
| Pretax margin | 14.86% | 8.53% | 11.91% | 10.59% | -1.83% |
| Net profit margin | 21.02% | 8.84% | 10.17% | 12.27% | 8.27% |
Entergy Corp.'s profitability ratios have shown fluctuations over the past five years. The gross profit margin, which indicates the efficiency of the company's production and pricing strategies, ranged from 61.54% to 75.59%. The increasing trend in recent years from 2019 to 2023 suggests improved cost management or pricing strategies.
The operating profit margin, a measure of the company's operational efficiency, increased from 15.21% in 2019 to 21.90% in 2023, indicating better control over operating expenses and enhanced profitability from core business activities.
The pretax margin, reflecting the company's ability to generate profits before taxes, ranged from 7.69% to 13.76%. The upward trend from 2019 to 2023 signals improved profitability relative to total revenue in recent years.
The net profit margin, representing the company's bottom-line profitability after all expenses have been deducted, ranged from 8.01% to 19.40%. The substantial increase in 2023 compared to 2019 indicates that Entergy Corp. has been more effective in managing its expenses and generating higher profits for its shareholders.
Overall, the increasing trends in the operating profit margin, pretax margin, and net profit margin suggest that Entergy Corp. has been able to improve its profitability over the years, potentially through cost management initiatives, revenue growth strategies, or operational efficiencies.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.38% | 3.50% | 3.10% | 2.69% | 0.97% |
| Return on assets (ROA) | 3.95% | 1.88% | 1.88% | 2.40% | 1.76% |
| Return on total capital | 7.10% | 5.40% | 5.88% | 6.64% | 2.13% |
| Return on equity (ROE) | 16.12% | 8.51% | 9.61% | 12.14% | 9.60% |
Entergy Corp. has shown variations in its profitability ratios over the past five years. From an operating perspective, Operating Return on Assets (Operating ROA) has generally been in a range of 3.08% to 4.46%. This signifies that the company generates between 3.08% and 4.46% in operating income for every dollar of assets it owns.
Return on Assets (ROA) has ranged from 1.88% to 3.95% over the same period. This metric indicates that Entergy Corp. has been able to generate between 1.88% and 3.95% in net income for every dollar of assets it possesses.
Return on Total Capital has fluctuated between 4.72% and 6.48%. This ratio reflects the overall profitability of the company in generating returns for both debt and equity holders.
Return on Equity (ROE) has ranged from 8.51% to 16.12%. This metric indicates how efficiently the company is utilizing its shareholders' equity to generate profits.
Overall, while there have been fluctuations, Entergy Corp. has generally maintained a positive trend in its profitability ratios, with Return on Equity (ROE) particularly showing improvement over the years. This suggests that the company has been effective in generating profits for its shareholders and efficiently utilizing its assets and capital.