Public Service Enterprise Group Inc (PEG)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	2,353,000	3,685,000	1,381,000	-856,000	2,270,000
Revenue	US$ in thousands	10,290,000	11,237,000	9,800,000	9,722,000	9,603,000
Operating profit margin		22.87%	32.79%	14.09%	-8.80%	23.64%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $2,353,000K ÷ $10,290,000K
= 22.87%

The operating profit margin of Public Service Enterprise Group Inc has shown significant fluctuations over the past five years.

As of December 31, 2020, the operating profit margin stood at 23.64%, reflecting a healthy level of profitability. However, by December 31, 2021, the operating profit margin had decreased significantly to -8.80%, indicating that the company's operating expenses exceeded its operating income, resulting in a negative margin.

In the following year, by December 31, 2022, the operating profit margin improved to 14.09%, but it was still below the level observed in 2020. It is worth noting that the company managed to enhance its profitability compared to the previous year.

The trend shifted positively in the subsequent years, with the operating profit margin reaching 32.79% by December 31, 2023, showcasing a substantial improvement and a return to a robust profitability level. This significant increase suggests that the company effectively managed its operating expenses relative to its revenue.

By the end of December 31, 2024, the operating profit margin slightly decreased to 22.87% from the previous year but still remained at a healthy level, demonstrating continued operational efficiency.

In conclusion, while the operating profit margin of Public Service Enterprise Group Inc experienced fluctuations over the analyzed period, the company was able to recover from a negative margin and improve its profitability, reaching and maintaining healthy levels in the later years.