Nextera Energy Inc (NEE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 63.94% | 48.38% | 50.32% | 59.49% |
| Operating profit margin | 38.15% | 36.41% | 19.47% | 22.78% | 20.58% |
| Pretax margin | 32.39% | 25.92% | 18.29% | 18.60% | 13.41% |
| Net profit margin | 26.69% | 26.00% | 19.79% | 20.93% | 16.22% |
Nextera Energy Inc's profitability ratios have shown fluctuations over the years based on the provided data.
- The gross profit margin, which measures the percentage of revenue left after subtracting the cost of goods sold, decreased from 59.49% in 2020 to 48.38% in 2022 before significantly increasing to 100.00% in 2024. This jump in 2024 could be a result of cost efficiencies or changes in the revenue mix.
- The operating profit margin, indicating the company's ability to generate profits from its core operations, saw a slight fluctuation over the years. It increased from 20.58% in 2020 to 22.78% in 2021, dipped to 19.47% in 2022, and then showed a strong improvement to 38.15% in 2024. This indicates better operational efficiency in 2024.
- The pretax margin, representing the percentage of each dollar of revenue that turns into pre-tax profit, exhibited a gradual increase over the years from 13.41% in 2020 to 32.39% in 2024. This suggests improved profitability before accounting for taxes.
- The net profit margin, which measures the percentage of revenue that translates into net income, also showed a consistent growth trend from 16.22% in 2020 to 26.69% in 2024. This indicates efficient cost management and a stronger bottom line.
Overall, Nextera Energy Inc's profitability ratios have shown positive trends in recent years, with notable improvements in operating profit margin, pretax margin, and net profit margin, indicating enhanced efficiency and profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.41% | 5.77% | 2.57% | 2.76% | 2.90% |
| Return on assets (ROA) | 2.39% | 4.12% | 2.61% | 2.54% | 2.29% |
| Return on total capital | 8.65% | 22.36% | 10.40% | 10.45% | 10.71% |
| Return on equity (ROE) | 9.07% | 15.40% | 10.57% | 9.60% | 7.99% |
Nextera Energy Inc's profitability ratios indicate the company's ability to generate returns for its stakeholders.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA decreased from 2.90% in 2020 to 2.57% in 2022 but showed a significant improvement to 5.77% in 2023 before declining to 3.41% in 2024. This ratio measures the efficiency of the company in generating operating income from its assets.
2. Return on Assets (ROA):
- The ROA fluctuated between 2.29% in 2020 to 4.12% in 2023, which indicates better utilization of assets to generate profit. It decreased to 2.39% in 2024. ROA reflects the profitability of the company in relation to its total assets.
3. Return on Total Capital:
- The Return on Total Capital ratio decreased from 10.71% in 2020 to 8.65% in 2024, with a significant peak at 22.36% in 2023. This ratio shows how efficiently the company is utilizing both debt and equity to generate returns.
4. Return on Equity (ROE):
- The ROE increased from 7.99% in 2020 to 15.40% in 2023, before slightly decreasing to 9.07% in 2024. This ratio demonstrates the profitability of the company from the perspective of its shareholders' equity.
In summary, Nextera Energy Inc's performance in terms of profitability shows fluctuations, with notable improvements in certain years, indicating varying levels of efficiency in utilizing assets and generating returns for both investors and the company itself.