National Fuel Gas Company (NFG)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 74.36% | 76.17% | 83.25% | 77.82% | 91.63% |
| Operating profit margin | 34.74% | 37.26% | 36.72% | 1.93% | 30.23% |
| Pretax margin | 29.51% | 31.23% | 27.45% | -6.79% | 23.00% |
| Net profit margin | 21.94% | 25.89% | 20.87% | -8.00% | 17.97% |
Based on the profitability ratios of National Fuel Gas Co., we can observe the following trends:
Gross profit margin:
The gross profit margin has experienced fluctuations over the years, with a significant decrease in 2020 followed by a recovery in the subsequent years. Overall, the company maintains a relatively high gross profit margin, indicating efficient cost management and strong pricing power.
Operating profit margin:
Similarly, the operating profit margin demonstrates fluctuations, reflecting the company's ability to control operating expenses and generate profits from core business activities. Despite some variability, the operating profit margin remains at a healthy level, providing a positive indication of operational efficiency.
Pretax margin:
The pretax margin also exhibits variability, with a notable negative margin in 2020 but subsequent improvements in the following years. This ratio reflects the company's ability to generate profits before accounting for taxes and indicates the impact of non-operating activities and tax management strategies.
Net profit margin:
The net profit margin, reflecting the company's bottom-line profitability, has experienced fluctuations, including a negative margin in 2020. However, there has been a steady recovery in the subsequent years, indicating improved profitability and effective management of costs and expenses.
In conclusion, while National Fuel Gas Co. has experienced some fluctuations in its profitability margins, the company has demonstrated resilience and an overall ability to maintain strong levels of profitability over the years, reflecting effective cost control and strategic management of its operations.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.12% | 10.32% | 8.57% | 0.43% | 7.92% |
| Return on assets (ROA) | 5.76% | 7.17% | 4.87% | -1.78% | 4.71% |
| Return on total capital | 33.20% | 55.77% | 14.15% | 0.26% | 11.61% |
| Return on equity (ROE) | — | — | 20.36% | -6.28% | 14.23% |
National Fuel Gas Co.'s profitability ratios indicate a mixed performance over the past five years. The operating return on assets (Operating ROA) decreased slightly from 10.15% in 2022 to 9.12% in 2023, indicating a slightly lower operating profit generated from the company's assets. However, this ratio remained relatively stable within the 8-10% range over the period, suggesting consistent operational efficiency in utilizing its assets to generate income.
Meanwhile, the return on assets (ROA) decreased from 7.17% in 2022 to 5.76% in 2023. This indicates a decrease in overall net income generated from the company's total assets. The substantial drop in 2020 with a negative ROA of -1.78% might be a point of concern, but the ratios have since rebounded, albeit remaining lower than in 2019. This indicates a fluctuating profitability in relation to its total assets over the period.
The return on total capital experienced a similar downward trend, decreasing to 13.40% in 2023 from 16.80% in 2022. Although the ratio indicates a decline in the return on the company's total capital, it has remained in the double digits, suggesting a satisfactory return on the total capital invested in the company.
Lastly, the return on equity (ROE) also exhibited a downward trend, decreasing to 16.09% in 2023 from 27.21% in 2022. While the ROE has fluctuated over the years, it has generally remained positive, indicating that the company has been able to generate a return on the shareholders' equity, although at a lower rate compared to prior years.
In summary, while National Fuel Gas Co. has generally exhibited stability and operational efficiency in generating returns from its assets and capital, the decreasing trend in these profitability ratios over the past year may suggest a need for further analysis of the company's performance and the factors affecting its profitability.