Public Service Enterprise Group Inc (PEG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 58.31% | 50.24% | 24.80% | 68.12% | 66.18% |
| Operating profit margin | 32.79% | 14.09% | -8.80% | 23.64% | 19.28% |
| Pretax margin | 27.42% | 10.22% | -11.20% | 23.96% | 19.35% |
| Net profit margin | 22.81% | 10.52% | -6.67% | 19.84% | 16.80% |
Public Service Enterprise Group Inc. has shown fluctuations in its profitability ratios over the past five years. The gross profit margin has generally been healthy, with a noticeable improvement in 2023 compared to the previous years. This suggests the company is effectively managing its production and distribution costs to generate profit from its core operations.
The operating profit margin has seen significant variation, with a sharp increase in 2023 compared to 2022 and 2021. This indicates that the company has been able to control its operating expenses more efficiently in the most recent year, leading to a higher proportion of revenue translating into operating profit.
The pretax margin shows substantial volatility, particularly evident in the negative figure in 2021. However, there has been a strong recovery, with a notable increase in 2023. This could be a result of better tax planning strategies or improvements in operating efficiency that have positively impacted the company's profitability.
The net profit margin has also displayed fluctuations, with a remarkable turnaround from a negative figure in 2021 to a notable increase in 2023. This improvement indicates that the company has been successful in managing its expenses, taxes, and other financial obligations to increase its bottom line.
Overall, the trend of increasing profitability margins in 2023 compared to the previous years suggests that Public Service Enterprise Group Inc. has made significant efforts to enhance its operational efficiency and financial performance. However, close monitoring of future financial statements will be essential to track the sustainability of these improvements.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.26% | 2.83% | -1.75% | 4.54% | 4.07% |
| Return on assets (ROA) | 5.05% | 2.12% | -1.32% | 3.81% | 3.55% |
| Return on total capital | 12.01% | 5.65% | -1.80% | 9.79% | 9.00% |
| Return on equity (ROE) | 18.18% | 8.35% | -4.79% | 12.60% | 11.87% |
Public Service Enterprise Group Inc. has shown improvements in profitability ratios over the years, as evidenced by the increasing trend in operating return on assets (Operating ROA) from 2019 to 2023. The Operating ROA increased significantly from 4.91% in 2019 to 7.28% in 2023, indicating the company's ability to generate operating profits relative to its total assets has been improving.
Similarly, the Return on Assets (ROA) has also shown an increasing trend, with a notable rebound from a negative 1.32% in 2021 to 5.05% in 2023. This indicates that the company has been more effective in utilizing its assets to generate profits for shareholders.
Return on equity (ROE) has also exhibited growth over the years, increasing from 11.22% in 2019 to 16.56% in 2023. This demonstrates the company's ability to generate profits from shareholders' equity and create value for its investors.
The Return on Total Capital has shown an upward trend as well, increasing from 7.53% in 2019 to 10.34% in 2023, indicating that the company has been able to generate a higher return on the total capital invested in the business.
Overall, Public Service Enterprise Group Inc. has shown consistent improvements in profitability ratios, reflecting its effective management of assets, capital, and equity to generate profits and create value for its stakeholders.