Kinder Morgan Inc (KMI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 65.17% | 61.61% | 46.71% | 45.23% | 56.03% |
| Operating profit margin | 29.03% | 27.80% | 21.17% | 17.56% | 13.33% |
| Pretax margin | 21.85% | 20.26% | 16.97% | 12.96% | 5.13% |
| Net profit margin | 17.30% | 15.59% | 13.27% | 10.74% | 1.02% |
Kinder Morgan Inc's profitability ratios have displayed notable trends over the years. The gross profit margin, representing the portion of revenue retained after accounting for the cost of goods sold, showed a decline from 56.03% in 2020 to 45.23% in 2021. However, it subsequently improved to 46.71% in 2022, surged to 61.61% in 2023, and further increased to 65.17% in 2024, indicating enhanced operational efficiency and cost management.
The operating profit margin, which reveals the company's ability to generate profits from its operations, exhibited an upward trajectory, rising from 13.33% in 2020 to 17.56% in 2021, 21.17% in 2022, 27.80% in 2023, and further to 29.03% in 2024. This consistent growth suggests improved operational performance and effective cost controls.
The pretax margin, representing the profitability before accounting for taxes, showed a notable increase over the years, climbing from 5.13% in 2020 to 12.96% in 2021, 16.97% in 2022, 20.26% in 2023, and reaching 21.85% in 2024. This indicates enhanced efficiency in managing expenses and generating earnings before tax.
Moreover, the net profit margin, which reflects the profitability after all expenses, including taxes, displayed a substantial increase from 1.02% in 2020 to 10.74% in 2021, 13.27% in 2022, 15.59% in 2023, and further to 17.30% in 2024. This trend signifies improved bottom-line performance and enhanced net income generation for Kinder Morgan Inc.
Overall, Kinder Morgan Inc's profitability ratios demonstrate a positive trajectory, highlighting improvements in operational efficiency, cost management, and overall profitability over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.14% | 6.00% | 5.80% | 4.14% | 2.17% |
| Return on assets (ROA) | 3.66% | 3.37% | 3.64% | 2.53% | 0.17% |
| Return on total capital | 7.26% | 7.30% | 6.87% | 4.74% | 2.45% |
| Return on equity (ROE) | 8.56% | 7.89% | 8.29% | 5.79% | 0.38% |
Based on the provided data, Kinder Morgan Inc's profitability ratios have shown positive trends over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has improved consistently from 2.17% in 2020 to 6.14% in 2024. This indicates that the company is generating more operating income per dollar of assets over time.
2. Return on Assets (ROA):
- Similarly, the ROA has increased from 0.17% in 2020 to 3.66% in 2024, showing that the company's overall profitability in relation to its total assets has also been on an upward trajectory.
3. Return on Total Capital:
- The Return on Total Capital has shown a steady growth, rising from 2.45% in 2020 to 7.26% in 2024. This suggests that Kinder Morgan Inc is efficiently utilizing its total capital to generate profits for its investors.
4. Return on Equity (ROE):
- The ROE has experienced significant growth, moving from 0.38% in 2020 to 8.56% in 2024, demonstrating that the company has been effectively leveraging shareholder equity to enhance returns.
Overall, Kinder Morgan Inc's profitability ratios exhibit positive trends, indicating improving operational efficiency, effective asset utilization, and enhanced returns for both investors and stakeholders.