Kinder Morgan Inc (KMI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 61.61% | 46.71% | 45.23% | 56.03% | 68.58% |
| Operating profit margin | 27.80% | 21.17% | 17.56% | 13.33% | 36.89% |
| Pretax margin | 20.26% | 16.97% | 12.96% | 5.13% | 23.59% |
| Net profit margin | 15.59% | 13.27% | 10.74% | 1.02% | 16.58% |
Kinder Morgan Inc's profitability ratios have displayed fluctuations over the past five years. The gross profit margin, which indicates the efficiency of production and pricing, was relatively high in 2020 and 2019 at 78.25% and 75.30%, respectively, but decreased to 51.80% in 2022 before recovering to 67.80% in 2023.
The operating profit margin, a measure of operating efficiency, has also varied, with a peak in 2020 at 29.83% and a low in 2022 at 20.97%. In 2023, the operating profit margin improved to 27.70%.
The pretax margin, reflecting the company's profitability before taxes, showed mixed results, with a significant decrease in 2021 but a notable increase in 2019. The pretax margin was highest in 2023 at 20.88%.
Lastly, the net profit margin, which assesses overall profitability, experienced fluctuations, with a substantial increase in 2019, a sharp decrease in 2020, and a gradual increase thereafter. In 2023, the net profit margin reached 15.50%.
Overall, Kinder Morgan Inc's profitability ratios indicate varying trends in different years, highlighting the company's ability to manage costs and generate profits amidst changing market conditions.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.00% | 5.80% | 4.14% | 2.17% | 6.57% |
| Return on assets (ROA) | 3.37% | 3.64% | 2.53% | 0.17% | 2.95% |
| Return on total capital | 7.30% | 6.87% | 4.74% | 2.45% | 7.42% |
| Return on equity (ROE) | 7.89% | 8.29% | 5.79% | 0.38% | 6.49% |
Kinder Morgan Inc's profitability ratios have shown variability over the past five years. The operating return on assets (Operating ROA) has generally been stable, ranging from 4.85% in 2020 to 6.44% in 2021, with a slight decrease to 5.98% in 2023. This indicates the company's ability to generate profit from its assets before interest and taxes.
Return on assets (ROA) reflects the company's overall profitability relative to its total assets. The ROA has fluctuated more significantly, with a notable increase to 3.62% in 2022, followed by a decline to 3.35% in 2023. The return on total capital has shown a consistent upward trend, reaching 8.15% in 2023, suggesting efficient utilization of both debt and equity to generate returns.
Return on equity (ROE) measures the company's profitability from the perspective of shareholder equity. Kinder Morgan Inc's ROE has varied, with the highest value recorded in 2022 at 8.25% and the lowest in 2020 at 0.34%. Overall, the ROE has demonstrated improvement over the years, indicating the company's ability to generate returns for its shareholders.
In conclusion, while Kinder Morgan Inc has experienced fluctuations in its profitability ratios, the company has shown a general trend of improving returns on both assets and equity. Further analysis of the company's financial performance and market conditions would be needed to fully assess its profitability and financial health.