National Fuel Gas Company (NFG)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 59.55% | 74.36% | 76.17% | 83.25% | 77.82% |
| Operating profit margin | 10.78% | 34.74% | 37.26% | 36.72% | 1.93% |
| Pretax margin | 4.49% | 29.51% | 31.23% | 27.45% | -6.79% |
| Net profit margin | 3.99% | 21.94% | 25.89% | 20.87% | -8.00% |
The profitability ratios of National Fuel Gas Company indicate a notable downward trend over the past five years. The gross profit margin has declined consistently, from 77.82% in 2020 to 59.55% in 2024, suggesting a decrease in the company's ability to generate profits from its core operations.
Similarly, the operating profit margin has decreased significantly, from 36.72% in 2021 to 10.78% in 2024. This indicates lower efficiency in managing operating expenses and generating profits after considering all operating costs.
The pretax margin also reflects a decline from 27.45% in 2021 to 4.49% in 2024, indicating a decrease in the company's profitability before accounting for taxes. Furthermore, the net profit margin has decreased consistently over the years, from -8.00% in 2020 to 3.99% in 2024. This implies that National Fuel Gas Company's bottom line profitability has improved but still remains relatively low.
Overall, the declining trend in profitability margins suggests potential challenges in cost management, revenue generation, and overall financial performance for National Fuel Gas Company in recent years. Further analysis of operational efficiency and strategic initiatives may be needed to address these profitability concerns.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.52% | 9.12% | 10.32% | 8.57% | 0.43% |
| Return on assets (ROA) | 0.93% | 5.76% | 7.17% | 4.87% | -1.78% |
| Return on total capital | 10.40% | 33.20% | 55.77% | 14.15% | 0.26% |
| Return on equity (ROE) | — | — | — | 20.36% | -6.28% |
National Fuel Gas Company's profitability ratios show a mixed performance over the past five years.
Operating return on assets (Operating ROA) has fluctuated, with a notable decrease in 2020 followed by a gradual increase in subsequent years, reaching 2.52% in 2024. This suggests that the company's operating activities have become more efficient in generating profits relative to its total assets.
Return on assets (ROA) has shown a similar trend, improving from a negative figure in 2020 to 0.93% in 2024. This indicates an overall enhancement in the company's ability to generate earnings from its assets over the years.
Return on total capital has experienced significant fluctuations, with a substantial increase in 2022, followed by a sharp decline in 2023 and a rebound in 2024 to reach 10.40%. This ratio reflects the company's overall profitability in relation to its total capital invested, including both debt and equity.
Return on equity (ROE) was positive in 2021 and 2020, indicating that the company generated returns for its shareholders. However, it turned negative in 2020, suggesting that the company struggled to generate profits compared to its equity investment.
Overall, National Fuel Gas Company has shown improvements in its profitability ratios, particularly in Operating ROA and ROA, indicating enhanced operational efficiency and better asset utilization. However, the fluctuations in Return on total capital and the negative ROE in some years highlight the company's volatility in generating returns on capital and equity.