NiSource Inc (NI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 60.57% | 53.83% | 60.45% | 123.06% | 77.24% |
| Operating profit margin | 26.89% | 23.70% | 22.97% | 14.48% | 13.21% |
| Pretax margin | 17.72% | 18.14% | 16.03% | -0.91% | 7.51% |
| Net profit margin | 14.83% | 15.06% | 13.34% | -0.46% | 5.68% |
From the profitability ratios of NiSource Inc over the past five years, we observe the following trends:
1. Gross Profit Margin:
The gross profit margin has fluctuated over the years, ranging from 63.93% in 2022 to a high of 76.31% in 2020. In 2023, the gross profit margin increased significantly to 72.15%, indicating the company's ability to control its production costs and generate profits from its core operations.
2. Operating Profit Margin:
The operating profit margin has also shown variability, with the highest margin recorded in 2020 at 26.31% and the lowest in 2023 at 19.85%. The operating profit margin represents the efficiency of the company in managing its operating expenses relative to its revenue.
3. Pretax Margin:
The pretax margin reflects the company's ability to generate profits before accounting for taxes. The peak margin of 16.35% in 2022 decreased to 14.78% in 2023, although still higher than the negative margin reported in 2020. This suggests that the company improved its pre-tax profitability in 2023, despite some fluctuations in the preceding years.
4. Net Profit Margin:
The net profit margin, a key indicator of a company's overall profitability, has also displayed variability. The margin ranged from a negative 1.55% in 2020 to a high of 12.80% in 2022. In 2023, the net profit margin was 12.01%, indicating a sustainable level of profitability after some challenges in 2020.
Overall, NiSource Inc has demonstrated resilience in its profitability performance over the past five years, with some fluctuations in margins but generally maintaining a positive trend. Continued attention to cost management and revenue generation will be essential for sustaining and improving profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.17% | 4.73% | 4.17% | 2.50% | 3.93% |
| Return on assets (ROA) | 2.30% | 3.01% | 2.42% | -0.08% | 1.69% |
| Return on total capital | 7.21% | 8.29% | 6.01% | 2.00% | 6.00% |
| Return on equity (ROE) | 8.64% | 10.61% | 8.42% | -0.31% | 6.40% |
NiSource Inc's profitability ratios show mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has remained relatively stable, fluctuating between 4.18% and 5.76%. This ratio indicates the company's ability to generate operating income from its assets, with a slight dip in 2023 compared to 2022.
2. Return on assets (ROA) shows slightly higher variability, with a significant negative figure in 2020. This suggests that the company struggled to generate profits relative to its total assets, but there has been an improvement in the subsequent years.
3. Return on total capital has demonstrated a consistent trend, hovering around 6-8% over the period. This ratio reflects the company's ability to generate returns for both debt and equity providers.
4. Return on equity (ROE) has shown fluctuations, with negative performance in 2020 but a recovery in the following years. ROE is a measure of how effectively the company is using shareholders' equity to generate profits.
In conclusion, while NiSource Inc's profitability ratios have not shown a consistent upward trend, they have generally remained stable or improved in the most recent years. This indicates some level of financial performance improvement, but areas for further enhancement may still exist.