Portland General Electric Co (POR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 85.39% | 84.06% | 82.85% | 83.12% | 82.76% |
| Operating profit margin | 13.55% | 15.00% | 15.78% | 12.54% | 16.63% |
| Pretax margin | 9.34% | 10.28% | 11.14% | 7.23% | 11.35% |
| Net profit margin | 7.80% | 8.80% | 10.18% | 7.23% | 10.08% |
Portland General Electric Co's profitability ratios have exhibited a declining trend over the past five years. The gross profit margin has decreased from 71.08% in 2019 to 59.29% in 2023, indicating a reduction in the percentage of revenue retained after accounting for the cost of goods sold.
Similarly, the operating profit margin has also shown a decrease from 16.63% in 2019 to 13.55% in 2023, suggesting lower efficiency in generating profits from core operations. The pretax margin has fluctuated over the years, with a downward trend from 11.35% in 2019 to 9.34% in 2023, reflecting variations in pre-tax profitability.
The net profit margin, representing the company's bottom line profitability, has experienced a downward trajectory from 10.08% in 2019 to 7.80% in 2023. This decline indicates that Portland General Electric Co may be facing challenges in controlling expenses and optimizing revenue streams, impacting overall profitability.
In conclusion, Portland General Electric Co's profitability ratios highlight a trend of deteriorating margins over the past five years, signaling potential issues in cost management and revenue generation strategies that may need to be addressed for improved financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.53% | 3.80% | 3.98% | 2.97% | 4.21% |
| Return on assets (ROA) | 2.03% | 2.23% | 2.57% | 1.71% | 2.55% |
| Return on total capital | 5.48% | 6.44% | 6.31% | 4.89% | 6.80% |
| Return on equity (ROE) | 6.87% | 8.38% | 9.01% | 5.93% | 8.26% |
Portland General Electric Co's profitability ratios have shown some fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has slightly decreased over the years from 4.21% in 2019 to 3.53% in 2023, with a peak in 2021 at 3.98%. This ratio indicates the company's ability to generate operating income from its assets, and the downward trend suggests a potential decline in operational efficiency.
2. Return on assets (ROA) has also experienced fluctuations, ranging from 1.71% in 2020 to 2.57% in 2021. The ratio improved in 2023 to 2.03%, indicating the company's ability to generate profit from its total assets. However, it still remains below the levels seen in 2021.
3. Return on total capital shows a similar pattern with a peak in 2021 at 6.01% and a decrease in 2023 to 5.10%. This ratio reflects the company's ability to generate returns on the total invested capital, including both debt and equity. The downward trend may indicate a decrease in profitability relative to the total capital employed.
4. Return on equity (ROE) has also exhibited fluctuations, with a high of 9.01% in 2021 and a low of 5.93% in 2020. The ratio in 2023 stands at 6.87%, showing the company's ability to generate returns for its shareholders. However, the ratio has not yet reached the levels seen in 2021.
Overall, while Portland General Electric Co has shown some profitability, there are areas where improvements can be made to enhance operational efficiency and generate higher returns for its stakeholders.