Evergy Inc. Common Stock (EVRG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 71.69% | 76.27% | 76.09% | 73.61% | 75.33% |
| Operating profit margin | 23.28% | 21.63% | 24.25% | 23.28% | 23.04% |
| Pretax margin | 13.56% | 13.66% | 17.85% | 14.66% | 14.90% |
| Net profit margin | 13.28% | 12.85% | 15.75% | 12.58% | 13.01% |
Evergy Inc's profitability ratios demonstrate variations over the past five years. The gross profit margin has ranged from 68.92% to 77.63%, with a peak in 2020. This indicates the company's ability to generate profit from its core operations after deducting the cost of goods sold.
The operating profit margin has shown a relatively stable trend, hovering around 22-24% over the period. This ratio reflects the company's efficiency in managing its operating expenses in relation to revenue.
The pretax margin peaked in 2021 at 18.07%, showing a significant increase from the prior years. This metric indicates Evergy's ability to generate earnings before accounting for taxes.
The net profit margin, which represents the percentage of revenue that translates into net income, has fluctuated between 12.58% and 15.75% over the period. This measure of overall profitability suggests that the company has been able to efficiently manage its expenses while generating profit for its shareholders.
Overall, Evergy Inc has shown a mixed performance in terms of profitability ratios, with certain metrics improving in some years and declining in others. Investors may want to further explore the reasons behind these fluctuations to assess the company's long-term profitability prospects.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.14% | 4.30% | 4.75% | 4.22% | 4.57% |
| Return on assets (ROA) | 2.36% | 2.55% | 3.08% | 2.28% | 2.58% |
| Return on total capital | 6.14% | 6.21% | 7.39% | 6.16% | 6.59% |
| Return on equity (ROE) | 7.57% | 7.94% | 9.52% | 7.08% | 7.82% |
Evergy Inc's profitability ratios have shown some fluctuations over the past five years.
1. Operating Return on Assets (Operating ROA) has displayed a slight downward trend, declining from 4.57% in 2019 to 4.14% in 2023. This ratio indicates the company's operating income generated per dollar of assets employed.
2. Return on Assets (ROA) has also seen variations, with a peak of 3.08% in 2021 and a low of 2.28% in 2020. ROA measures the company's overall efficiency in generating profits from its total assets.
3. Return on Total Capital has fluctuated between 5.65% and 6.68% over the past five years, showing how effectively the company is utilizing both equity and debt to generate returns.
4. Return on Equity (ROE) has shown a similar pattern, peaking at 9.52% in 2021 and bottoming out at 7.08% in 2020. ROE highlights the company's ability to generate profits from shareholder investments.
Overall, Evergy Inc's profitability ratios reflect some degree of variability but generally demonstrate the company's ability to generate returns for both asset and capital providers, albeit with some fluctuations in performance over the years.