GE Vernova LLC (GEV)
Profitability ratios
Return on sales
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | |
|---|---|---|---|---|
| Gross profit margin | 16.51% | 16.66% | 14.95% | 14.45% |
| Operating profit margin | 0.30% | 0.46% | -2.49% | -3.07% |
| Pretax margin | 5.21% | 5.62% | 0.80% | -0.15% |
| Net profit margin | 3.38% | 3.22% | -1.05% | -1.62% |
GE Vernova LLC's profitability ratios show a mixed trend over the four quarters analyzed.
- The gross profit margin has been gradually increasing from 14.45% in December 31, 2023, to 16.51% in September 30, 2024, indicating an improvement in the efficiency of the company's production and procurement processes.
- The operating profit margin, although still negative in December 31, 2023, and March 31, 2024, has shown a positive trend, reaching 0.30% in September 30, 2024. This suggests that the company is becoming more efficient in managing its operating expenses.
- The pretax margin has also improved significantly over the quarters, moving from -0.15% in December 31, 2023, to 5.21% in September 30, 2024, signifying better control over non-operating expenses and income.
- The net profit margin has followed a similar positive trajectory, increasing from a negative margin in December 31, 2023, and March 31, 2024, to 3.38% in September 30, 2024. This improvement indicates that GE Vernova LLC is effectively managing its overall expenses and generating higher net income relative to revenue.
Overall, the profitability ratios of GE Vernova LLC demonstrate a strengthening financial performance and operational efficiency over the analyzed period.
Return on investment
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.20% | 0.32% | -1.75% | -2.16% |
| Return on assets (ROA) | 2.29% | 2.27% | -0.74% | -1.14% |
| Return on total capital | 5.29% | 9.57% | 3.72% | 0.21% |
| Return on equity (ROE) | 12.24% | 12.01% | -3.96% | -6.02% |
Profitability ratios provide insight into a company's ability to generate profits relative to its resources and capital.
1. Operating return on assets (Operating ROA) measures the operating profit generated per dollar of assets. GE Vernova LLC's Operating ROA was negative in December 2023 and March 2024, showing inefficiency in asset utilization. However, there was improvement in June and September 2024, indicating a slight increase in operational efficiency.
2. Return on assets (ROA) indicates the overall profitability of the company in relation to its total assets. The company experienced negative ROA in December 2023 and March 2024, suggesting unprofitable asset management during that period. However, there was a significant positive turnaround in ROA in June and September 2024, indicating improved profitability relative to assets.
3. Return on total capital reflects the return generated on all invested capital, including debt and equity. GE Vernova LLC's return on total capital saw a gradual increase from 0.21% in December 2023 to 9.57% in June 2024, but then dipped to 5.29% in September 2024. This indicates varying levels of profitability from capital investments during the period.
4. Return on equity (ROE) measures how efficiently the company is generating profit from shareholders' equity. The company had negative ROE in December 2023 and March 2024, indicating losses relative to shareholders' equity. However, there was a significant improvement in ROE in June and September 2024, showing a positive trend in generating profits for the shareholders.
Overall, GE Vernova LLC demonstrated mixed profitability performance across the analyzed periods, with improvements in some ratios indicating better asset and capital utilization for generating returns. It is important for the company to sustain and improve these ratios to ensure long-term profitability and shareholder value.