GE Vernova LLC (GEV)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.41% | 16.41% | 16.56% | 14.95% | 14.45% |
| Operating profit margin | 1.35% | -0.07% | 0.08% | -2.49% | -3.07% |
| Pretax margin | 7.12% | 5.19% | 5.60% | 0.73% | -0.15% |
| Net profit margin | 4.44% | 3.38% | 3.23% | -1.05% | -1.62% |
GE Vernova LLC has shown improvements in its profitability ratios over the year.
The gross profit margin, which indicates the percentage of revenue that exceeds the cost of goods sold, has increased steadily from 14.45% in December 2023 to 17.41% in December 2024. This indicates that the company has been able to control its production costs and generate more profit from its sales.
The operating profit margin, which reflects the proportion of revenue that remains after accounting for operating expenses, started in negative territory at -3.07% in December 2023 but has gradually improved to 1.35% by December 2024. This suggests that the company has become more efficient in managing its operating expenses and has started to generate profits from its core business activities.
The pretax margin, which represents the percentage of income before taxes out of total revenue, also shows a positive trend, increasing from -0.15% in December 2023 to 7.12% in December 2024. This indicates that GE Vernova LLC has been successful in increasing its profitability before accounting for taxes.
Finally, the net profit margin, which shows how much of each dollar of revenue translates into profit after all expenses are deducted, has improved from -1.62% in December 2023 to 4.44% in December 2024. This demonstrates that the company has been able to effectively manage its expenses and generate higher profits relative to its revenue.
Overall, GE Vernova LLC has made significant progress in improving its profitability ratios, indicating better financial performance and efficiency over the course of the year.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.92% | -0.05% | 0.06% | -1.75% | -2.16% |
| Return on assets (ROA) | 3.01% | 2.29% | 2.27% | -0.74% | -1.14% |
| Return on total capital | 4.94% | 3.11% | 7.28% | 1.40% | 0.21% |
| Return on equity (ROE) | 16.26% | 12.24% | 12.01% | -3.96% | -6.02% |
Based on the data provided, GE Vernova LLC's profitability ratios show fluctuations over the periods analyzed.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA started with a negative value of -2.16% on December 31, 2023, and improved to positive figures over time, reaching 0.92% by December 31, 2024. This indicates that the company's operating profits generated from its assets improved over the period.
2. Return on Assets (ROA):
- The ROA also started in the negative territory on December 31, 2023, but saw consistent improvement, reaching 3.01% by December 31, 2024. This suggests that the company became more efficient in generating profits relative to its total assets.
3. Return on Total Capital:
- The return on total capital exhibited variability, with a low of 0.21% on December 31, 2023, and a high of 7.28% on June 30, 2024. The ratio then decreased to 4.94% by December 31, 2024. This shows fluctuations in the company's ability to generate returns on its total invested capital.
4. Return on Equity (ROE):
- The ROE also showed a mix of negative and positive values over the period, with significant improvement from -6.02% on December 31, 2023, to 16.26% by December 31, 2024. This indicates that the company's net income relative to shareholders' equity improved substantially.
Overall, GE Vernova LLC's profitability ratios demonstrate a mix of challenges and positive trends, with improvements in generating returns on assets, total capital, and equity over the analyzed periods. Monitoring these ratios can provide insights into the company's financial performance and efficiency in utilizing its resources.