Entergy Corporation (ETR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 48.30% | 43.87% | 38.33% | 41.49% | 44.08% |
| Operating profit margin | 22.32% | 21.55% | 14.90% | 15.72% | 17.49% |
| Pretax margin | 12.14% | 13.76% | 7.69% | 11.16% | 12.71% |
| Net profit margin | 8.89% | 19.45% | 7.97% | 9.53% | 13.91% |
Entergy Corporation's profitability ratios demonstrate fluctuations over the years. The gross profit margin has shown a decreasing trend from 44.08% in 2020 to 38.33% in 2022, before rebounding to 48.30% in 2024. This indicates a variation in the company's ability to generate profits after accounting for the cost of goods sold.
Similarly, the operating profit margin has also experienced fluctuations, declining from 17.49% in 2020 to 14.90% in 2022, then increasing to 22.32% in 2024. This metric reflects the efficiency of Entergy's core operations in generating profits.
The pretax margin demonstrates volatility, with a notable decrease in 2022 at 7.69%, followed by a recovery to 13.76% in 2023. This ratio illustrates the company's ability to generate profits before accounting for taxes.
Lastly, the net profit margin indicates fluctuations in the company's bottom-line profitability, with a significant increase to 19.45% in 2023 following a decline to 7.97% in 2022. The net profit margin shows the percentage of revenue that translates into net income after all expenses have been deducted.
Overall, Entergy Corporation's profitability ratios reflect varying levels of efficiency and performance in generating profits over the analyzed period. The company's ability to manage costs, improve operational efficiency, and generate higher margins could be key factors impacting its profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.09% | 4.38% | 3.50% | 3.10% | 3.04% |
| Return on assets (ROA) | 1.63% | 3.96% | 1.87% | 1.88% | 2.42% |
| Return on total capital | 17.54% | 18.27% | 15.15% | 18.43% | 18.95% |
| Return on equity (ROE) | 7.00% | 16.12% | 8.44% | 9.61% | 12.87% |
Entergy Corporation's profitability ratios show varied performance over the past five years.
1. Operating return on assets (Operating ROA) has shown a modest improvement from 3.04% in 2020 to 4.09% in 2024. This indicates the company's ability to generate profits from its operational assets has been gradually increasing.
2. Return on assets (ROA) fluctuated, with a notable dip in 2021 at 1.88% but recovering to 3.96% in 2023 before decreasing to 1.63% in 2024. This suggests that the company's overall profitability in relation to its total assets has been inconsistent.
3. Return on total capital remained relatively stable between 15.15% and 18.95% over the five-year period. This ratio indicates how efficiently the company is using its total capital to generate profits.
4. Return on equity (ROE) experienced a significant drop in 2021 to 9.61% before bouncing back to 16.12% in 2023, and then dropping again to 7.00% in 2024. ROE reflects the return generated for shareholders based on their equity investment.
Overall, Entergy Corporation has demonstrated a mix of improving and fluctuating profitability ratios over the examined period. The company should focus on sustaining and enhancing its performance to ensure long-term financial health and shareholder value.