NiSource Inc (NI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 67.26% | 60.57% | 53.83% | 60.45% | 123.06% |
| Operating profit margin | 31.02% | 26.89% | 23.70% | 22.97% | 14.48% |
| Pretax margin | 19.57% | 17.72% | 18.14% | 16.03% | -0.91% |
| Net profit margin | 16.20% | 14.83% | 15.06% | 13.34% | -0.46% |
NiSource Inc's profitability ratios indicate fluctuations in its profitability over the years. The Gross Profit Margin decreased from 123.06% in 2020 to 67.26% in 2024, suggesting a decline in the company's efficiency in generating profits from its core business activities.
The Operating Profit Margin improved from 14.48% in 2020 to 31.02% in 2024, indicating better operational efficiency and cost management during this period. This improvement demonstrates NiSource's ability to control its operating costs and generate higher profits from its day-to-day operations.
The Pretax Margin also showed a positive trend, increasing from -0.91% in 2020 to 19.57% in 2024. This indicates that NiSource was able to enhance its profitability before accounting for taxes, potentially through improved revenue generation or cost control measures.
Similarly, the Net Profit Margin increased from -0.46% in 2020 to 16.20% in 2024, showcasing NiSource's ability to generate profits after considering all expenses, including taxes. This growth in net profit margin reflects the company's overall profitability and financial health.
Overall, while NiSource Inc experienced fluctuations in its Gross Profit Margin, the company demonstrated improved operating efficiency and profitability over the years, as indicated by the positive trends in its Operating Profit Margin, Pretax Margin, and Net Profit Margin.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.58% | 4.17% | 4.73% | 4.17% | 2.50% |
| Return on assets (ROA) | 2.39% | 2.30% | 3.01% | 2.42% | -0.08% |
| Return on total capital | 6.87% | 7.21% | 8.29% | 6.01% | 2.00% |
| Return on equity (ROE) | 8.76% | 8.64% | 10.61% | 8.42% | -0.31% |
NiSource Inc's profitability ratios have shown a positive trend over the years:
1. Operating return on assets (Operating ROA) has increased from 2.50% in 2020 to 4.58% in 2024, indicating that the company's operating activities are becoming more efficient in generating profit from its assets.
2. Return on assets (ROA) has also shown improvement, moving from -0.08% in 2020 to 2.39% in 2024, indicating that NiSource is generating more income from its total assets.
3. Return on total capital has shown a steady increase from 2.00% in 2020 to 6.87% in 2024, demonstrating that the company is effectively using its total capital to generate returns.
4. Return on equity (ROE) has shown consistent growth, rising from -0.31% in 2020 to 8.76% in 2024, showcasing an improvement in how efficiently NiSource is utilizing its equity to generate profits for its shareholders.
Overall, NiSource Inc's profitability ratios suggest an improving financial performance, with increasing returns and efficiency in utilizing its assets and capital to generate profits.