IDACORP Inc (IDA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 76.73% | 17.94% | 20.08% | 22.79% | 23.11% |
| Operating profit margin | 17.95% | 17.75% | 19.90% | 22.61% | 22.92% |
| Pretax margin | 16.70% | 16.37% | 18.09% | 19.39% | 19.74% |
| Net profit margin | 15.83% | 14.79% | 15.75% | 16.84% | 17.58% |
The Gross Profit Margin of IDACORP Inc has shown a downward trend over the past five years, decreasing from 23.11% in December 31, 2020, to 17.94% in December 31, 2023. However, there was a significant increase in the Gross Profit Margin to 76.73% in December 31, 2024, which may require further investigation to determine the reason behind this sudden spike.
The Operating Profit Margin has also slightly declined over the period, from 22.92% in December 31, 2020, to 17.95% in December 31, 2024. This suggests that the company's operating efficiency may have been impacted.
Similarly, the Pretax Margin has decreased gradually from 19.74% in December 31, 2020, to 16.70% in December 31, 2024. This indicates that the company's profitability before taxes has been under pressure in recent years.
The Net Profit Margin, which reflects the profitability after all expenses, has fluctuated over the years, with a slight decrease from 17.58% in December 31, 2020, to 15.83% in December 31, 2024. This may indicate challenges in maintaining profitability at the bottom line.
Overall, the profitability ratios of IDACORP Inc suggest a mixed performance, with some margins showing declines while others exhibit fluctuations. It would be prudent for stakeholders to further analyze the company's financial performance and assess the underlying factors causing these changes to make informed decisions.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.55% | 3.70% | 4.34% | 4.57% | 4.36% |
| Return on assets (ROA) | 3.13% | 3.08% | 3.43% | 3.41% | 3.35% |
| Return on total capital | 13.24% | 13.95% | 11.33% | 11.78% | 11.63% |
| Return on equity (ROE) | 8.68% | 8.98% | 9.23% | 9.20% | 9.27% |
IDACORP Inc's profitability ratios based on the provided data show a mixed performance over the years in terms of generating returns.
1. Operating return on assets (Operating ROA) has fluctuated slightly between 4.36% in December 2020 to 3.55% in December 2024. This ratio indicates that the company is generating operating income relative to its assets, with a slight decline noted over the years.
2. Return on assets (ROA) has also shown variations, ranging from 3.35% in December 2020 to 3.13% in December 2024. This ratio reflects the company's ability to generate profits from its total assets, with a slight decrease observed over the period.
3. Return on total capital has shown an overall positive trend, increasing from 11.63% in December 2020 to 13.24% in December 2024. This ratio indicates the efficiency of utilizing both debt and equity capital to generate returns, with a notable improvement in 2023 and 2024.
4. Return on equity (ROE) has experienced a relatively stable performance, with values fluctuating between 9.27% in December 2020 to 8.68% in December 2024. ROE measures the company's profitability from shareholders' equity, and the marginal decrease over the years suggests a moderate impact on shareholders' returns.
Overall, IDACORP Inc has shown varying trends in profitability ratios over the years, with some ratios indicating stability or improvement, while others displaying a slight decline. It is essential for the company to continue monitoring these ratios to ensure sustained profitability and efficient use of resources.