MGE Energy Inc (MGEE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | -8.67% | -7.71% | -6.46% | -7.20% | -7.79% |
| Operating profit margin | 21.61% | 21.20% | 19.28% | 19.34% | 20.42% |
| Pretax margin | 19.38% | 21.07% | 19.20% | 18.11% | 20.76% |
| Net profit margin | 17.81% | 17.05% | 15.53% | 17.44% | 17.16% |
MGE Energy Inc's profitability ratios have shown varying trends over the years.
1. Gross Profit Margin: The company's gross profit margin has been consistently negative, ranging from -6.46% to -8.67% in the last five years. This indicates that the cost of goods sold has been higher than the revenue generated from sales.
2. Operating Profit Margin: MGE Energy Inc's operating profit margin has been relatively stable, hovering between 19.28% and 21.61% during the same period. This suggests that the company has been able to control its operating expenses effectively.
3. Pretax Margin: The pretax margin has fluctuated, with a peak of 21.07% in 2023 and a low of 18.11% in 2021. This ratio reflects the company's ability to generate profits before accounting for taxes.
4. Net Profit Margin: The net profit margin has also shown some variability, with a low of 15.53% in 2022 and a high of 17.81% in 2024. This metric indicates the company's bottom-line profitability after all expenses, including taxes, have been accounted for.
Overall, MGE Energy Inc's profitability ratios suggest mixed performance in terms of generating profits relative to its revenue and expenses. Monitoring these ratios can provide insights into the company's financial health and effectiveness in managing its operations.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.17% | 5.47% | 5.47% | 4.95% | 4.88% |
| Return on assets (ROA) | 4.26% | 4.40% | 4.41% | 4.46% | 4.10% |
| Return on total capital | 7.34% | 7.87% | 8.26% | 7.14% | 7.36% |
| Return on equity (ROE) | 9.80% | 10.32% | 10.26% | 10.29% | 9.47% |
MGE Energy Inc's profitability ratios have shown a mixed performance over the years.
- Operating return on assets (Operating ROA) has improved from 4.88% in 2020 to 5.17% in 2024, indicating that the company's operating income generated from its assets has increased over the years.
- Return on assets (ROA) has fluctuated slightly, ranging from 4.10% in 2020 to 4.46% in 2021, and then stabilizing around 4.40%-4.26% from 2022 to 2024. This ratio demonstrates the company's ability to generate profit from its total assets.
- Return on total capital has seen an increase from 7.36% in 2020 to 8.26% in 2022, showing that the company's profitability concerning its total capital employed has improved. However, it slightly declined to 7.34% in 2024.
- Return on equity (ROE) has shown a relatively stable trend, with values ranging from 9.47% in 2020 to 10.32% in 2023, and then decreasing to 9.80% in 2024. This ratio reflects the return generated on the shareholders' equity investment in the company.
Overall, MGE Energy Inc has demonstrated consistency in generating returns for its shareholders and efficiently utilizing its assets and capital, although there have been some fluctuations in certain profitability ratios over the years.