OGE Energy Corporation (OGE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 41.77% | 41.39% | 33.79% | 27.55% | 9.64% |
| Operating profit margin | 24.97% | 24.31% | 19.24% | 14.89% | 24.61% |
| Pretax margin | 17.44% | 17.69% | 23.38% | 24.04% | -14.19% |
| Net profit margin | 14.79% | 15.59% | 19.72% | 20.18% | -8.18% |
OGE Energy Corporation's profitability has shown a positive trend over the years based on the provided data.
- The gross profit margin has significantly improved from 9.64% in December 2020 to 41.77% in December 2024. This indicates that the company has been able to effectively manage its production costs and generate a higher percentage of revenue as gross profit.
- The operating profit margin, which reflects the company's ability to control its operating expenses, fluctuated initially, but stabilized at 24.97% in December 2024. This suggests that OGE Energy Corporation has been successful in optimizing its operating efficiency.
- The pretax margin, representing the company's profitability before taxes, has also shown a positive trend, increasing from -14.19% in December 2020 to 17.44% in December 2024. This indicates that the company has been able to enhance its profitability levels over the years.
- The net profit margin, which indicates the company's bottom-line profitability after all expenses have been deducted, improved from -8.18% in December 2020 to 14.79% in December 2024. This suggests that OGE Energy Corporation has been able to effectively manage its costs and increase its profitability.
Overall, the data reveals that OGE Energy Corporation has made substantial improvements in its profitability margins over the years, reflecting better cost management and operational efficiency.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.43% | 5.08% | 5.18% | 4.32% | 4.87% |
| Return on assets (ROA) | 3.22% | 3.26% | 5.31% | 5.85% | -1.62% |
| Return on total capital | 8.02% | 7.84% | 8.16% | 6.36% | 7.33% |
| Return on equity (ROE) | 9.51% | 9.24% | 15.08% | 18.18% | -4.78% |
OGE Energy Corporation's profitability ratios indicate the company's ability to generate returns for its stakeholders.
1. Operating return on assets (Operating ROA) has shown a fluctuating trend over the years, with a slight decrease from 2021 to 2022, followed by an increase in 2023 and a slight decrease again in 2024. This ratio ranged from 4.32% to 5.43% during the period under review.
2. Return on assets (ROA) also displayed variability, starting with a negative figure in 2020, followed by a significant improvement in 2021, and then decreasing in the subsequent years. The range of ROA was from -1.62% to 5.85% during the years analyzed.
3. Return on total capital depicted a relatively stable performance, with a slight increase from 2020 to 2022 and then maintaining a comparable level in 2023 and 2024. The range of return on total capital was between 6.36% to 8.16% over the years.
4. Return on equity (ROE) had a remarkable improvement from a negative figure in 2020 to a high of 18.18% in 2021. However, it declined in the subsequent years but remained positive. The ROE ranged from -4.78% to 18.18% throughout the period.
Overall, OGE Energy Corporation's profitability ratios suggest a mixed performance in generating returns for its assets, capital, and equity, reflecting the company's varying efficiency in utilizing its resources to create value for its shareholders.