Nextera Energy Inc (NEE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 65.85% | 70.20% | 68.09% | 63.88% | 63.74% |
| Operating profit margin | 41.43% | 17.53% | 15.30% | 30.14% | 30.41% |
| Pretax margin | 33.66% | 20.33% | 20.59% | 17.45% | 23.95% |
| Net profit margin | 29.59% | 17.82% | 18.76% | 17.19% | 21.41% |
NextEra Energy Inc's profitability ratios show a positive trend over the past five years. The gross profit margin has generally increased from 77.28% in 2019 to 80.59% in 2023, indicating the company is effectively managing its cost of goods sold.
The operating profit margin also improved significantly, with the ratio increasing from 26.32% in 2019 to 32.67% in 2023. This suggests that NextEra Energy has been successful in controlling its operating expenses and generating profits from its core business activities.
The pretax margin shows a consistent upward trend, starting at 19.98% in 2019 and reaching 25.92% in 2023. This indicates that the company's profitability before taxes has been increasing steadily over the years.
Similarly, the net profit margin has shown improvement, rising from 19.63% in 2019 to 26.00% in 2023. This indicates that NextEra Energy Inc has been effective in managing its overall expenses and generating profits for its shareholders.
Overall, the increasing trend in all profitability ratios suggests that NextEra Energy Inc has been successful in improving its operational efficiency and profitability over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.77% | 2.57% | 2.07% | 4.01% | 4.55% |
| Return on assets (ROA) | 4.12% | 2.61% | 2.54% | 2.29% | 3.20% |
| Return on total capital | 9.40% | 4.32% | 3.30% | 6.52% | 7.18% |
| Return on equity (ROE) | 15.40% | 10.57% | 9.60% | 7.99% | 10.19% |
NextEra Energy Inc's profitability ratios have shown a varying trend over the past five years.
- Operating return on assets (Operating ROA) has improved from 2.37% in 2022 to 5.17% in 2023, indicating the company's ability to generate operating income from its assets has strengthened significantly.
- Return on assets (ROA) has fluctuated between 2.29% and 4.12% over the same period, with a noticeable increase in 2023. ROA measures the company's overall efficiency in generating profits from its total assets.
- Return on total capital has shown a similar trend, increasing notably from 3.61% in 2022 to 7.61% in 2023. This metric reflects the company's ability to generate returns from both equity and debt capital invested in the business.
- Return on equity (ROE) has also seen fluctuations, reaching the highest point of 15.40% in 2023. ROE indicates how effectively the company is utilizing shareholders' equity to generate profit.
In general, the upward trend in most profitability ratios suggests an improvement in NextEra Energy Inc's profitability and efficient utilization of its assets and capital over the past year. However, further analysis would be needed to understand the underlying factors contributing to these changes and to assess the sustainability of this trend in the future.