GE Vernova LLC (GEV)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Gross profit margin | 14.94% | 12.31% | 16.10% |
| Operating profit margin | -1.44% | -5.88% | -1.15% |
| Pretax margin | -0.39% | -8.34% | -2.62% |
| Net profit margin | -1.32% | -9.23% | -1.92% |
GE Vernova LLC's profitability ratios have shown fluctuations over the past three years. The gross profit margin, which indicates the proportion of revenue retained after accounting for the cost of goods sold, improved from 12.31% in 2022 to 14.94% in 2023, suggesting more efficient management of production costs.
However, the operating profit margin, which reflects the company's ability to generate profit from its core operations, remained negative at -1.44% in 2023. This indicates that the company is still facing challenges in controlling its operating expenses relative to sales.
Similarly, the pretax margin, which illustrates the company's profitability before taxes, improved slightly from -8.34% in 2022 to -0.39% in 2023, but it still remains in negative territory. This suggests that the company may have reduced its non-operating expenses or enhanced its other income sources.
Overall, the net profit margin, which represents the percentage of revenue that translates into net income, also improved from -9.23% in 2022 to -1.32% in 2023. While this is a positive trend, the company is still operating at a net loss, albeit at a lower rate compared to the previous year.
In conclusion, GE Vernova LLC has shown some improvements in its profitability ratios but continues to face challenges in achieving sustainable profitability. Further analysis and actions may be needed to enhance operational efficiency and control costs effectively to drive overall profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.04% | -3.92% | — |
| Return on assets (ROA) | -0.95% | -6.15% | — |
| Return on total capital | -6.47% | -16.37% | — |
| Return on equity (ROE) | -5.91% | -25.69% | — |
GE Vernova LLC's profitability ratios indicate mixed performance over the three-year period.
1. Operating return on assets (Operating ROA) improved from -3.92% in 2022 to -1.04% in 2023, reflecting a better operational efficiency in generating profits from its assets.
2. Return on assets (ROA) also showed an improvement from -6.15% in 2022 to -0.95% in 2023, indicating that the company generated slightly higher profits relative to its total assets.
3. Return on total capital decreased significantly from -16.37% in 2022 to -6.47% in 2023, suggesting that the company's overall capital utilization or efficiency in generating returns worsened but showed some signs of recovery.
4. Return on equity (ROE) improved from -25.69% in 2022 to -5.91% in 2023, indicating that the company's ability to generate profits from shareholders' equity improved, although the ratio remained negative.
Overall, GE Vernova LLC's profitability ratios reflect a mixed performance with improvements in certain areas, such as ROA and ROE, but challenges in generating returns on total capital. Close monitoring of operational efficiency and capital utilization will be essential for sustained profitability in the future.