FirstEnergy Corporation (FE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 86.59% | 84.86% | 85.80% | 86.25% | 85.72% |
| Operating profit margin | 17.61% | 15.33% | 15.50% | 20.04% | 22.75% |
| Pretax margin | 10.64% | 11.29% | 14.40% | 11.17% | 10.19% |
| Net profit margin | 8.56% | 3.26% | 11.53% | 10.00% | 8.26% |
Firstenergy Corp.'s profitability ratios demonstrate fluctuations over the past five years. The gross profit margin has been relatively stable, ranging between 63.14% and 71.55%, indicating consistent efficiency in managing direct production costs.
However, there has been some variability in the operating profit margin, declining from 22.75% in 2019 to 15.33% in 2022 before recovering to 17.61% in 2023. This suggests fluctuations in operating expenses and other costs affecting profitability.
The pretax margin has also shown fluctuations, with a peak of 14.00% in 2021 and a low of 10.12% in 2019. This metric reflects the company's ability to generate profits before accounting for taxes.
Net profit margin, which represents the bottom line profitability after all expenses, has shown significant variability, with a notable drop from 11.53% in 2021 to 3.26% in 2022, before rebounding to 8.56% in 2023. This variation indicates changes in the company's ability to generate net income relative to its revenues.
Overall, while the gross profit margin indicates operational efficiency, the fluctuations in operating, pretax, and net profit margins suggest potential challenges in managing expenses and maximizing profitability over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.65% | 4.14% | 3.80% | 4.86% | 5.93% |
| Return on assets (ROA) | 2.26% | 0.88% | 2.82% | 2.43% | 2.16% |
| Return on total capital | 23.89% | 24.05% | 31.61% | 31.37% | 30.94% |
| Return on equity (ROE) | 10.56% | 3.99% | 14.79% | 14.91% | 13.08% |
FirstEnergy Corp.'s profitability ratios show a mixed performance over the past five years. Operating return on assets (Operating ROA) has fluctuated slightly, with a slight increase in 2023 compared to the prior year. This indicates that the company generated approximately 4.65% of operating profit for every dollar of total assets in 2023.
Return on assets (ROA) has shown more significant fluctuations, with a notable increase in 2021 followed by a decline in 2022. In 2023, ROA improved to 2.26%, indicating the company generated 2.26 cents of profit for every dollar of assets.
Return on total capital has also varied over the years, peaking in 2019 and declining thereafter. In 2023, the return on total capital stood at 6.91%, indicating the company generated a return of 6.91 cents for every dollar of total capital employed.
Return on equity (ROE) has shown a similar pattern to return on total capital, with fluctuations over the years. In 2023, ROE improved significantly to 10.56%, suggesting that the company generated a return of 10.56 cents for every dollar of equity.
Overall, although FirstEnergy Corp. has experienced fluctuations in its profitability ratios, there are signs of improvement in 2023 compared to the prior year. However, a more consistent trend in profitability would be desirable for sustainable financial performance.