Exelon Corporation (EXC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 74.33% | 73.49% | 71.03% | 143.07% | 139.83% |
| Operating profit margin | 18.76% | 18.52% | 17.38% | 14.95% | 13.15% |
| Pretax margin | 11.58% | 12.44% | 13.20% | 9.72% | 11.74% |
| Net profit margin | 10.68% | 10.71% | 11.37% | 9.51% | 11.78% |
Exelon Corporation's profitability ratios have shown varying trends over the five-year period from 2020 to 2024.
- Gross Profit Margin: There was a sharp increase from 139.83% in 2020 to 143.07% in 2021, suggesting efficient cost management in generating revenue. However, the margin decreased in 2022 to 71.03%, likely due to changes in the cost structure or pricing strategies. There was a modest recovery in 2023 and 2024, reaching 73.49% and 74.33%, respectively.
- Operating Profit Margin: Exelon has consistently improved its operating profit margin from 13.15% in 2020 to 18.76% in 2024. This indicates effective control over operating expenses and a steady increase in profitability from core business operations.
- Pretax Margin: The pretax margin fluctuated during the period, starting at 11.74% in 2020, dropping to 9.72% in 2021, and then increasing to 13.20% in 2022. This suggests fluctuations in pre-tax profitability, possibly influenced by changes in tax liabilities and operating income. The margin stabilized in 2023 and 2024 at 12.44% and 11.58%, respectively.
- Net Profit Margin: The net profit margin followed a similar pattern to the pretax margin, starting at 11.78% in 2020 and decreasing to 9.51% in 2021. It then improved to 11.37% in 2022 before slightly declining to 10.71% in 2023 and 10.68% in 2024. This indicates that Exelon's bottom line profitability has been somewhat volatile but has generally remained within a certain range over the years.
Overall, Exelon Corporation's profitability ratios reflect a mix of cost management efforts, operational efficiency, and tax implications that have influenced its profitability over the analyzed period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.01% | 3.95% | 3.48% | 2.02% | 1.69% |
| Return on assets (ROA) | 2.28% | 2.29% | 2.28% | 1.28% | 1.52% |
| Return on total capital | 16.04% | 6.15% | 5.52% | 4.12% | 3.24% |
| Return on equity (ROE) | 9.14% | 9.04% | 8.77% | 4.96% | 6.02% |
Exelon Corporation's profitability ratios have shown a generally positive trend over the years based on the provided data.
1. Operating return on assets (Operating ROA) has increased from 1.69% in December 2020 to 4.01% in December 2024, indicating the company's ability to generate operating income from its total assets has been improving steadily.
2. Return on assets (ROA) has fluctuated slightly but remained relatively stable, ranging from 1.28% to 2.29% over the same period. This ratio measures the company's ability to generate profits from its total assets, and the fluctuation may indicate varying levels of profitability efficiency.
3. Return on total capital has shown a significant increase from 3.24% in December 2020 to 16.04% in December 2024, reflecting the company's ability to generate returns from both equity and debt capital employed in the business. This substantial improvement suggests effective capital utilization over the years.
4. Return on equity (ROE) has also demonstrated a positive trend, increasing from 4.96% in December 2021 to 9.14% in December 2024. ROE measures the company's ability to generate profits from shareholders' equity, and the upward trajectory indicates improved profitability for the equity investors.
Overall, Exelon Corporation has shown a positive trend in profitability ratios, indicating improving efficiency in generating profits from its assets, capital structure, and equity. It is essential for investors and stakeholders to monitor these ratios continuously to assess the company's financial performance and sustainability.