GE Vernova LLC (GEV)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Gross profit margin | 17.41% | 14.94% | 12.31% | 16.10% |
| Operating profit margin | 1.35% | -2.78% | -5.88% | -1.15% |
| Pretax margin | 7.15% | -0.39% | -8.34% | -2.62% |
| Net profit margin | 4.44% | -1.32% | -9.23% | -1.92% |
Based on the provided data, GE Vernova LLC's profitability ratios have shown some fluctuations over the years:
1. Gross Profit Margin:
- The gross profit margin declined from 16.10% in 2021 to 12.31% in 2022, indicating a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
- However, there was an improvement in 2023, with the gross profit margin increasing to 14.94% and further growth in 2024 to 17.41%, suggesting better control over direct costs.
2. Operating Profit Margin:
- The operating profit margin was negative in the years 2021 and 2022, indicating that the company's core operations were not generating profits after considering operating expenses.
- There was a slight improvement in 2023 with an operating profit margin of -2.78%, which turned positive in 2024 at 1.35%, signaling better operational efficiency.
3. Pretax Margin:
- The pretax margin was negative in 2021 and 2022, implying that the company was experiencing losses before accounting for taxes.
- However, there was a notable improvement in 2024, with a pretax margin of 7.15%, indicating that the company was able to generate profits before tax expenses.
4. Net Profit Margin:
- The net profit margin was negative in 2021 and 2022, reflecting that after accounting for all expenses, including taxes, the company was not profitable.
- The net profit margin turned positive in 2024 at 4.44%, demonstrating that the company was able to achieve profitability at the net income level.
Overall, GE Vernova LLC has shown a mix of declining and improving profitability ratios over the years, with notable improvements in gross profit margin and achieving profitability at the net income level in 2024. This trend suggests that the company may have successfully implemented cost-saving measures and operational improvements to enhance its profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.91% | -2.00% | -3.92% | — |
| Return on assets (ROA) | 3.01% | -0.95% | -6.15% | — |
| Return on total capital | 0.00% | -0.43% | -21.81% | — |
| Return on equity (ROE) | 16.26% | -5.91% | -25.69% | — |
Based on the provided data, let's analyze the profitability ratios of GE Vernova LLC:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA for the years ending December 31, 2022, and December 31, 2023, were -3.92% and -2.00%, respectively. This indicates that the company was generating negative operating profits relative to its asset base during these periods. However, in the following year ending December 31, 2024, the Operating ROA improved to 0.91%, suggesting a slight recovery in the company's operational efficiency.
2. Return on Assets (ROA):
- The ROA for GE Vernova LLC was also negative in the year ending December 31, 2022, with a value of -6.15%. This indicates that the company was not able to generate a positive return on its total assets during this period. However, the ROA improved to -0.95% in the following year ending December 31, 2023, and further increased to 3.01% by the end of December 31, 2024, reflecting a positive return on assets.
3. Return on Total Capital:
- The Return on Total Capital was significantly negative for the year ending December 31, 2022, at -21.81%. This suggests that the company's ability to generate returns relative to its total capital employed was weak during this period. The following year ending December 31, 2023, saw a slight improvement with a Return on Total Capital of -0.43%. However, by the end of December 31, 2024, the Return on Total Capital reached 0.00%, indicating that the company was able to break even in terms of generating returns compared to its total capital.
4. Return on Equity (ROE):
- The Return on Equity for GE Vernova LLC was negative for the years ending December 31, 2022, and December 31, 2023, with values of -25.69% and -5.91%, respectively. This suggests that the company was not effectively generating returns for its shareholders during these periods. However, there was a significant turnaround by the end of December 31, 2024, with an ROE of 16.26%, indicating a substantial improvement in the company's ability to generate returns for its equity investors.
In conclusion, the profitability ratios of GE Vernova LLC show varying performance trends over the analyzed period, with indications of negative profitability in some years but also signs of recovery and improvement in later years, particularly in generating returns on assets and equity.