Northwest Natural Gas Co (NWN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 83.95% | 82.92% | 80.36% | 80.23% | 77.04% |
| Operating profit margin | 15.44% | 16.14% | 18.96% | 19.17% | 19.22% |
| Pretax margin | 10.54% | 11.13% | 12.33% | 12.65% | 9.97% |
| Net profit margin | 7.84% | 8.32% | 9.14% | 9.92% | 8.27% |
Northwest Natural Holding Co's profitability ratios have shown some fluctuations over the past five years. The gross profit margin has remained relatively stable, ranging from 58.26% to 66.04%. This indicates the company's ability to efficiently manage its production costs.
The operating profit margin, which reflects the company's ability to control operating expenses, has also shown a decreasing trend, declining from 19.22% in 2019 to 15.44% in 2023. This suggests potential challenges in managing day-to-day operational costs.
The pretax margin, a measure of overall profitability before taxes, has fluctuated over the years but has generally trended downwards from 12.33% in 2021 to 10.54% in 2023. This may indicate challenges in generating higher profits after considering all expenses and before tax obligations.
The net profit margin, representing the final profitability after all expenses are deducted, has also shown a downward trend, decreasing from 9.92% in 2020 to 7.84% in 2023. This indicates that the company's bottom-line profitability has been under pressure in recent years.
Overall, Northwest Natural Holding Co's profitability ratios reveal some areas of concern, particularly in terms of controlling operating expenses and maintaining overall profit margins. Further analysis of the company's cost structure and revenue generation strategies may be necessary to address these profitability challenges.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.80% | 3.53% | 4.01% | 3.95% | 4.18% |
| Return on assets (ROA) | 1.93% | 1.82% | 1.94% | 2.04% | 1.80% |
| Return on total capital | 6.83% | 6.92% | 8.24% | 8.48% | 8.58% |
| Return on equity (ROE) | 7.31% | 7.34% | 8.41% | 8.64% | 7.13% |
Northwest Natural Holding Co's profitability ratios show a consistent trend over the past five years.
The Operating Return on Assets (Operating ROA) has fluctuated slightly between 3.53% to 4.18%, indicating that the company generates around 3.5% to 4% of operating income for every dollar of assets employed in its operations.
The Return on Assets (ROA) has ranged from 1.80% to 2.04%, showing that the company's net income generated from its total assets has been relatively stable but lower compared to the operating income.
The Return on Total Capital has ranged from 6.04% to 7.57%, reflecting the company's ability to generate returns for both equity and debt holders. The downward trend observed from 2021 to 2023 may indicate potential efficiency or profitability challenges in managing total capital.
Return on Equity (ROE) has varied between 7.13% to 8.64%, showcasing the profitability for shareholders' equity invested in the company. The fluctuations in ROE can be attributed to changes in net income and equity levels.
Overall, while the company has maintained profitability in relation to its assets and equity over the years, there may be opportunities for improvements in efficiency and capital management to enhance overall profitability in the future.