Northwest Natural Gas Co (NWN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 59.81% | 35.69% | 25.91% | 25.63% | 25.66% | 31.10% | 31.77% | 32.46% | 32.89% | 34.15% | 34.64% | 36.22% | 38.25% | 39.98% | 40.34% | 40.20% | 38.84% | 37.43% | 37.40% | 37.85% |
| Operating profit margin | 16.83% | 13.04% | 13.14% | 12.69% | 11.63% | 15.69% | 16.38% | 16.96% | 16.30% | 16.53% | 16.68% | 17.44% | 18.96% | 20.26% | 20.81% | 20.71% | 19.17% | 17.72% | 18.04% | 19.28% |
| Pretax margin | 9.28% | 9.40% | 9.85% | 10.06% | 10.54% | 10.74% | 11.44% | 11.93% | 11.13% | 11.07% | 11.10% | 11.31% | 12.33% | 13.43% | 14.03% | 13.55% | 11.81% | 10.20% | 10.40% | 11.83% |
| Net profit margin | 6.81% | 6.90% | 7.18% | 7.36% | 7.84% | 7.98% | 8.49% | 8.85% | 8.32% | 8.25% | 8.27% | 8.43% | 9.14% | 10.91% | 11.35% | 11.04% | 9.92% | 8.08% | 7.93% | 8.85% |
Northwest Natural Gas Co's profitability ratios have shown fluctuating trends over the years. The gross profit margin, which represents the efficiency of the company in generating revenue after deducting the cost of goods sold, has been on a declining trend from 2022 to 2024, dropping from 36.22% to 25.66% but saw a significant increase in December 2024 to 59.81%.
The operating profit margin, indicating the company's ability to generate profit from its core operations, experienced a slight decrease from 2020 to 2022, falling from 19.28% to 16.30%. However, there was an improvement in the latter half of 2024, increasing to 16.83%.
The pre-tax margin, which measures the percentage of profit retained from total revenue before taxes, has shown a downward trend from 2021 to 2024, declining from 13.55% to 9.28%. This suggests some challenges in managing pre-tax costs and expenses.
The net profit margin, reflecting the portion of revenue that translates into profit after all expenses are deducted, also exhibited a declining trend over the years, dropping from 11.04% in March 2021 to 6.81% in December 2024. This indicates a decrease in profitability relative to revenue.
In conclusion, the fluctuating profitability ratios of Northwest Natural Gas Co highlight the company's varying ability to generate and retain profit over the years, with potential areas for improvement in cost management and revenue generation strategies.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.71% | 3.00% | 3.11% | 3.06% | 2.82% | 4.09% | 4.30% | 4.25% | 3.56% | 3.68% | 3.83% | 3.85% | 4.01% | 4.26% | 4.50% | 4.43% | 3.95% | 3.72% | 3.75% | 3.60% |
| Return on assets (ROA) | 1.50% | 1.59% | 1.70% | 1.77% | 1.90% | 2.08% | 2.23% | 2.22% | 1.82% | 1.83% | 1.90% | 1.86% | 1.94% | 2.30% | 2.46% | 2.36% | 2.04% | 1.70% | 1.65% | 1.65% |
| Return on total capital | 13.80% | 15.32% | 14.31% | 14.21% | 15.16% | 16.10% | 15.77% | 15.66% | 14.43% | 13.20% | 12.28% | 13.22% | 13.55% | 15.41% | 15.60% | 15.52% | 15.12% | 14.17% | 14.00% | 14.55% |
| Return on equity (ROE) | 5.67% | 6.44% | 6.09% | 6.40% | 7.31% | 7.97% | 8.16% | 8.15% | 7.34% | 7.04% | 6.83% | 7.63% | 8.41% | 10.12% | 10.07% | 9.48% | 8.64% | 7.21% | 6.80% | 7.32% |
Northwest Natural Gas Co's profitability ratios have shown mixed performance over the analyzed period.
1. Operating Return on Assets (Operating ROA): Northwest Natural Gas Co's Operating ROA has seen fluctuations, ranging from a low of 2.82% in December 2023 to a high of 4.50% in June 2021. The company's ability to generate operating profits from its assets improved towards the end of the period.
2. Return on Assets (ROA): The ROA reflects the company's overall efficiency in generating profits from its assets. Northwest Natural Gas Co's ROA varied between 1.50% in December 2024 to 2.46% in June 2021, indicating some instability in its asset utilization and profitability.
3. Return on Total Capital: This ratio shows how effectively the company is utilizing its total capital to generate returns. Northwest Natural Gas Co's return on total capital ranged between 12.28% in June 2022 and 16.10% in September 2023. The company's performance in utilizing its total capital showed some improvement in 2023 compared to 2020.
4. Return on Equity (ROE): Northwest Natural Gas Co's ROE fluctuated between 5.67% in December 2024 and 10.12% in September 2021. The company experienced some challenges in generating returns for its equity holders, with a decreasing trend observed towards the end of the period.
In summary, Northwest Natural Gas Co's profitability ratios show a mixed performance with fluctuations in profitability and capital utilization efficiency. The company may need to focus on strategies to improve its overall profitability and return metrics to enhance shareholder value.