IDACORP Inc (IDA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 99.92% | 99.93% | 99.92% | 99.30% | 96.37% |
| Operating profit margin | 20.12% | 22.06% | 25.29% | 25.59% | 24.61% |
| Pretax margin | 18.52% | 20.02% | 21.67% | 22.00% | 21.23% |
| Net profit margin | 16.77% | 17.46% | 18.83% | 19.63% | 19.21% |
Idacorp, Inc. has shown fluctuations in its profitability ratios over the past five years. The gross profit margin, which indicates the efficiency of the company in managing its production costs, decreased from 78.81% in 2019 to 71.61% in 2023, suggesting a decrease in profitability at the gross level.
The operating profit margin, a measure of the company's ability to generate profit from its core operations, also exhibited a downward trend from 22.16% in 2019 to 18.14% in 2023, indicating a decrease in operational efficiency.
Similarly, the pretax margin, representing the company's profitability before accounting for taxes, showed a declining trend from 19.15% in 2019 to 16.37% in 2023, reflecting a decrease in overall profitability.
The net profit margin, which reveals the company's bottom-line profitability after all expenses and taxes have been deducted, declined from 17.29% in 2019 to 14.79% in 2023, indicating that Idacorp, Inc. is retaining less profit from its revenue compared to previous years.
Overall, the decline in all profitability ratios suggests that Idacorp, Inc. may be facing challenges in maintaining its profitability levels, which could be attributed to various factors such as increasing expenses, pricing pressures, or changes in the industry dynamics.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.70% | 4.34% | 4.57% | 4.36% | 4.49% |
| Return on assets (ROA) | 3.08% | 3.43% | 3.41% | 3.35% | 3.51% |
| Return on total capital | 7.13% | 7.72% | 7.91% | 7.75% | 8.18% |
| Return on equity (ROE) | 8.98% | 9.23% | 9.20% | 9.27% | 9.45% |
Idacorp, Inc.'s profitability ratios show a mixed performance over the past five years.
1. Operating return on assets (Operating ROA):
- The Operating ROA decreased from 4.49% in 2019 to 3.78% in 2023. This decline may indicate reduced efficiency in generating operating profit from its assets in recent years.
2. Return on assets (ROA):
- ROA fluctuated over the period, with a peak of 3.51% in 2019 and a low of 3.08% in 2023. This ratio indicates how effectively the company is utilizing its assets to generate profit.
3. Return on total capital:
- There was a general downward trend in Return on total capital, with a significant drop from 7.22% in 2019 to 5.80% in 2023. This suggests a decrease in the return generated from the company's total invested capital over the years.
4. Return on equity (ROE):
- ROE also showed a slight decrease over the years, from 9.45% in 2019 to 8.98% in 2023. This ratio reflects the company's ability to generate profit from shareholders' equity.
In conclusion, while some of Idacorp, Inc.'s profitability ratios have shown a decline, it is important for the company to focus on improving efficiency in utilizing assets, generating returns on capital, and maximizing returns for shareholders in the future.