Green Plains Renewable Energy Inc (GPRE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 5.31% | 5.00% | 3.76% | 7.15% | 5.80% |
| Operating profit margin | -1.93% | -1.87% | -2.70% | 0.90% | -6.38% |
| Pretax margin | -3.10% | -3.00% | -3.34% | -2.27% | -8.27% |
| Net profit margin | -3.36% | -2.83% | -3.47% | -2.33% | -5.65% |
Green Plains Renewable Energy Inc's profitability ratios have shown fluctuations over the past five years.
1. Gross Profit Margin:
- The gross profit margin has ranged from 3.76% to 7.15% during this period, indicating the company's ability to generate profits after accounting for the cost of goods sold.
2. Operating Profit Margin:
- The operating profit margin has been negative in most years, varying between -6.38% to 0.90%. This suggests challenges in controlling operating expenses and generating profits from core business operations.
3. Pretax Margin:
- The pretax margin has also been negative, ranging from -8.27% to -2.27%. This implies that the company's earnings before taxes have been consistently impacted by various expenses.
4. Net Profit Margin:
- The net profit margin, representing the company's bottom line profitability, has fluctuated between -5.65% to -2.33%. Although it improved slightly in some years, the overall trend indicates a struggle to maintain profitability after all expenses are accounted for.
In summary, Green Plains Renewable Energy Inc's profitability ratios reflect a mixed performance with challenges in controlling costs and generating consistent profits. Further analysis of the company's operations and strategies may be needed to improve its overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2.66% | -3.18% | -4.66% | 1.18% | -7.77% |
| Return on assets (ROA) | -4.63% | -4.82% | -5.99% | -3.06% | -6.89% |
| Return on total capital | -3.66% | -4.59% | -6.39% | 0.20% | -12.76% |
| Return on equity (ROE) | -9.53% | -11.07% | -13.98% | -6.94% | -16.82% |
Based on the provided data, we can analyze the profitability ratios of Green Plains Renewable Energy Inc as follows:
1. Operating Return on Assets (Operating ROA):
- There was a significant improvement in operating ROA from -7.77% in December 2020 to 1.18% in December 2021, indicating a better utilization of assets to generate operating profits.
- However, the ratio deteriorated in the following years, with negative values recorded in December 2022, December 2023, and December 2024, suggesting a decline in the efficiency of asset utilization in generating operating income.
2. Return on Assets (ROA):
- ROA also showed improvement from -6.89% in December 2020 to -3.06% in December 2021, but it remained negative throughout the years, indicating that the company's profitability in relation to its total assets was subpar.
- The ratio fluctuated around negative values, signifying challenges in generating profits from the assets deployed in the business.
3. Return on Total Capital:
- Return on total capital improved notably from -12.76% in December 2020 to 0.20% in December 2021, suggesting better returns on the overall capital employed.
- However, the ratio declined in subsequent years, remaining negative in December 2022, December 2023, and December 2024, indicating declining profitability in relation to the total capital invested in the company.
4. Return on Equity (ROE):
- ROE exhibited an improvement from -16.82% in December 2020 to -6.94% in December 2021, indicating a better return for the equity shareholders during that period.
- Nevertheless, the ratio decreased in the following years, remaining negative throughout, showcasing the challenges in generating returns for the equity investors.
In summary, while there were instances of improvements in some profitability ratios in certain years, the company faced challenges in maintaining consistent positive returns and profitability across all the indicated years, indicating the need for effective management strategies to enhance profitability and shareholder value.