OGE Energy Corporation (OGE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 41.39% | 33.79% | 27.55% | 9.64% | 44.59% |
| Operating profit margin | 24.31% | 19.24% | 14.89% | 24.61% | 22.60% |
| Pretax margin | 17.69% | 23.38% | 24.04% | -14.19% | 20.77% |
| Net profit margin | 15.59% | 19.72% | 20.18% | -8.18% | 19.43% |
Oge Energy Corp.'s profitability ratios have shown some fluctuations over the past five years.
1. Gross Profit Margin: The gross profit margin has generally been healthy, showing an increasing trend from 2019 to 2023. This indicates that the company has been able to effectively manage its production costs and generate strong revenues.
2. Operating Profit Margin: The operating profit margin has also shown an increasing trend over the period, indicating that the company has been able to control its operating expenses more effectively and improve its operational efficiency.
3. Pretax Margin: The pretax margin peaked in 2021, showing a strong performance. However, there was a significant decline in 2020, suggesting that the company faced challenges in generating profits before accounting for taxes.
4. Net Profit Margin: The net profit margin also showed fluctuations, with a significant decline in 2020. This indicates that the company's bottom line was affected by various factors, possibly including one-time charges or operational inefficiencies.
Overall, while Oge Energy Corp. has shown improvements in its profitability margins, there have been fluctuations that may require further analysis to understand the underlying reasons. It is essential for the company to sustain its positive trends and address any issues that may impact its profitability ratios in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.08% | 5.18% | 4.32% | 4.87% | 4.57% |
| Return on assets (ROA) | 3.26% | 5.31% | 5.85% | -1.62% | 3.93% |
| Return on total capital | 7.84% | 8.16% | 6.36% | 7.33% | 6.88% |
| Return on equity (ROE) | 9.24% | 15.08% | 18.18% | -4.78% | 10.47% |
Oge Energy Corp.'s profitability ratios have fluctuated over the past five years.
The Operating ROA has shown a general upward trend from 2019 to 2022, indicating an improvement in the company's ability to generate operating profit from its assets. However, there was a slight decrease in 2023 to 5.08%.
ROA reflects the company's overall profitability and efficiency in using its assets to generate earnings. The ratio has varied significantly, with a notable negative return in 2020 and a decrease in 2023 to 3.26%, possibly indicating challenges in asset utilization and profitability.
Return on total capital has also displayed fluctuations, with a negative return in 2020 and a slight decrease to 6.95% in 2023. This ratio shows the profitability of the company's total invested capital.
ROE indicates the return generated for the shareholders' equity. There was a significant negative return in 2020 and a decrease in 2023 to 9.24%, showing a moderate profitability for shareholders compared to previous years.
In summary, Oge Energy Corp.'s profitability ratios have been mixed, with improvements in certain years but also challenges in others. It is essential for investors to closely monitor these ratios to assess the company's overall financial health and performance.