NorthWestern Corporation (NWE)

Net profit margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024
Net income (ttm) US$ in thousands 224,111 226,701 209,217
Revenue (ttm) US$ in thousands 1,513,898 1,496,441 1,472,370
Net profit margin 14.80% 15.15% 14.21%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $224,111K ÷ $1,513,898K
= 14.80%

Net profit margin is a key financial ratio that measures a company's profitability by expressing its net income as a percentage of its total revenue.

Analyzing the net profit margin of NorthWestern Corporation for the periods provided, we observe a consistent performance in terms of profitability. In June 2024, the company's net profit margin was 14.21%, which increased to 15.15% in September 2024, and then slightly decreased to 14.80% by December 2024.

This indicates that NorthWestern Corporation was able to effectively convert its revenue into profit during the period under review. Generally, a higher net profit margin is preferred as it signifies better profitability and efficiency in managing costs.

Overall, the company's ability to maintain a relatively stable net profit margin over the specified periods suggests good financial management and sustainable profitability levels.