PG&E Corp (PCG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 95.98% | 95.52% | 97.83% | 98.34% | 98.38% |
| Operating profit margin | 18.26% | 10.93% | 8.47% | 9.12% | 9.50% |
| Pretax margin | 9.47% | 2.86% | 2.20% | 3.62% | -5.10% |
| Net profit margin | 10.29% | 9.24% | 8.37% | -0.43% | -7.06% |
Based on the provided data for PG&E Corp, we can analyze the profitability ratios as follows:
1. Gross Profit Margin:
- The gross profit margin measures the percentage of revenue that exceeds the cost of goods sold. PG&E Corp's gross profit margin has remained consistently high over the years, ranging from 95.52% to 98.38%. This indicates that the company has effectively managed its production and distribution costs.
2. Operating Profit Margin:
- The operating profit margin reflects the percentage of revenue that remains after deducting operating expenses. PG&E Corp's operating profit margin has shown some fluctuations, with a low of 8.47% in 2022 to a high of 18.26% in 2024. The increase in 2024 suggests improved operational efficiency and cost management.
3. Pretax Margin:
- The pretax margin represents the percentage of revenue remaining after accounting for all expenses except taxes. PG&E Corp's pretax margin has shown variability, with a negative margin in 2020 followed by positive margins in the subsequent years. The significant improvement in 2024 to 9.47% indicates the company's ability to generate higher earnings before taxes.
4. Net Profit Margin:
- The net profit margin reflects the percentage of revenue that translates into net income after all expenses, including taxes. PG&E Corp's net profit margin has shown a significant improvement over the years, from negative values in 2020 and 2021 to positive margins of 8.37% in 2022, 9.24% in 2023, and 10.29% in 2024. This trend indicates the company's enhanced profitability and more effective management of expenses.
Overall, PG&E Corp has demonstrated positive trends in its profitability ratios, showcasing improvements in cost management, operational efficiency, and ultimately, profitability over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.34% | 2.12% | 1.55% | 1.82% | 1.79% |
| Return on assets (ROA) | 1.88% | 1.79% | 1.53% | -0.09% | -1.33% |
| Return on total capital | 5.33% | 3.51% | 2.60% | 3.18% | 3.01% |
| Return on equity (ROE) | 8.33% | 9.01% | 7.95% | -0.42% | -6.21% |
Based on the provided profitability ratios for PG&E Corp:
1. Operating return on assets (Operating ROA) shows a stable performance with a slight improvement over the years, from 1.79% in 2020 to 3.34% in 2024. This indicates that the company is generating operating income efficiently relative to its total assets.
2. Return on assets (ROA) had a negative performance in 2020 and 2021, but turned positive in subsequent years, reaching 1.88% in 2024. This shows the company's ability to generate profits from its assets, with a trend towards improvement.
3. Return on total capital demonstrates a similar trend to ROA, with a gradual increase from 3.01% in 2020 to 5.33% in 2024. This ratio reflects the efficiency of the company in generating returns from both equity and debt capital.
4. Return on equity (ROE) had a significant improvement from negative values in 2020 and 2021 to 8.33% in 2024. This indicates that the company has been more profitable for its shareholders over the years, showing a positive turnaround.
Overall, PG&E Corp has shown positive trends in profitability ratios over the years, indicating improved operational efficiency and better returns for both asset and equity holders.