NorthWestern Corporation (NWE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | |
|---|---|---|---|
| Gross profit margin | 92.96% | 92.87% | 93.13% |
| Operating profit margin | 21.36% | 22.37% | 21.90% |
| Pretax margin | 14.18% | 15.47% | 14.87% |
| Net profit margin | 14.80% | 15.15% | 14.21% |
NorthWestern Corporation's profitability ratios demonstrate a strong performance over the three quarters analyzed in 2024. The gross profit margin remained consistently high, ranging from 92.87% to 93.13%, indicating efficient cost management and a healthy markup on sales.
The operating profit margin also exhibited stability, with figures between 21.36% and 22.37%. This suggests effective control over operating expenses and a good balance between revenue and costs at the operational level.
Furthermore, the pretax margin, which reflects the company's profitability before taxes, showed a similar trend, fluctuating between 14.18% and 15.47%. This indicates that NorthWestern Corporation was able to generate solid earnings relative to its total revenue, even after accounting for operating expenses.
Lastly, the net profit margin, representing the profitability after taxes and all other expenses, ranged from 14.21% to 15.15%. This highlight the company's ability to maintain a healthy bottom line and effectively convert revenue into net income.
Overall, the consistent and relatively high profitability margins suggest that NorthWestern Corporation is effectively managing its costs, generating strong earnings, and maintaining a healthy level of profitability throughout the analyzed period in 2024.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.04% | 4.26% | 4.18% |
| Return on assets (ROA) | 2.80% | 2.89% | 2.71% |
| Return on total capital | 5.82% | 6.22% | 6.00% |
| Return on equity (ROE) | 7.84% | 8.05% | 7.45% |
NorthWestern Corporation's profitability ratios for the period ending December 31, 2024, show a mixed performance.
- Operating return on assets (Operating ROA) for December 31, 2024, stood at 4.04%, which indicates that the company generated approximately $0.0404 in operating income for every dollar of assets. This ratio remained relatively consistent from the previous quarters, showing stability in the company's operational efficiency.
- Return on assets (ROA) for December 31, 2024, was 2.80%, reflecting the company's ability to generate profits from its total assets. While this ratio increased slightly from the previous quarter, it still suggests that NorthWestern Corporation may have room for improvement in utilizing its assets more effectively to enhance profitability.
- Return on total capital for December 31, 2024, was 5.82%, showing the company's efficiency in generating returns from its total capital employed. This ratio also saw a slight decrease from the prior quarter, indicating that the company's capital utilization may have been less effective during this period.
- Return on equity (ROE) for December 31, 2024, was 7.84%, demonstrating the company's ability to generate a return for its equity shareholders. Although this ratio improved from the previous quarter, it suggests that NorthWestern Corporation could potentially enhance profitability further by increasing shareholder value.
Overall, NorthWestern Corporation's profitability ratios present a picture of stability and moderate improvement in certain aspects of profitability, but there may be opportunities for the company to optimize its asset utilization and enhance returns for its stakeholders.