PPL Corporation (PPL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 90.65% | 91.06% | 85.32% | 86.81% | 127.11% |
| Operating profit margin | 20.56% | 19.61% | 17.39% | 24.62% | 28.97% |
| Pretax margin | 13.19% | 11.12% | 12.11% | -16.89% | 32.57% |
| Net profit margin | 10.49% | 8.90% | 9.57% | -25.59% | 26.84% |
The Gross Profit Margin of PPL Corporation has decreased from 127.11% in December 2020 to 85.32% in December 2022, showing a declining trend. However, it slightly improved to 90.65% by December 2024.
The Operating Profit Margin has also experienced a decrease, from 28.97% in December 2020 to 17.39% in December 2022, but then increased to 20.56% by December 2024.
The Pretax Margin initially dropped significantly from 32.57% in December 2020 to -16.89% in December 2021, indicating a loss. It then gradually recovered to 13.19% by December 2024.
The Net Profit Margin of PPL Corporation showed a similar pattern, plunging from 26.84% in December 2020 to -25.59% in December 2021 before recovering to 10.49% by December 2024.
Overall, while there have been fluctuations in profitability margins over the analyzed period, there seems to be a general trend towards recovery and improvement in profitability performance by the end of December 2024.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.24% | 4.15% | 3.63% | 4.29% | 3.30% |
| Return on assets (ROA) | 2.16% | 1.89% | 2.00% | -4.45% | 3.05% |
| Return on total capital | 6.17% | 5.57% | 5.48% | -0.24% | 8.96% |
| Return on equity (ROE) | 6.31% | 5.31% | 5.43% | -10.78% | 10.98% |
PPL Corporation's profitability ratios show varying levels of performance over the years.
1. Operating return on assets (Operating ROA): This ratio indicates how efficient the company is in generating profits from its operations relative to its total assets. PPL Corporation's Operating ROA has shown an increasing trend from 3.30% in 2020 to 4.24% in 2024, with a peak at 4.29% in 2021. This suggests that the company has been improving its operational efficiency over the years.
2. Return on assets (ROA): ROA represents the company's overall ability to generate profits from its assets. PPL Corporation's ROA experienced fluctuation, with a significant downturn in 2021 at -4.45% but showed a recovery in subsequent years, reaching 2.16% in 2024. Despite the fluctuations, the company managed to maintain positive returns on its assets.
3. Return on total capital: This ratio reflects the return generated on the total invested capital, including both equity and debt. PPL Corporation's Return on Total Capital also demonstrated volatility, with a negative return in 2021 followed by a gradual recovery, reaching 6.17% in 2024. This indicates that the company has been able to enhance its profitability relative to its total capital.
4. Return on equity (ROE): ROE measures the return earned on the shareholders' equity. PPL Corporation's ROE had a sharp decline in 2021, showing a negative return of -10.78%, but rebounded in the subsequent years, reaching 6.31% in 2024. Despite the challenges faced in 2021, the company managed to improve its profitability for shareholders in the following years.
Overall, PPL Corporation's profitability ratios exhibit mixed performance trends, with some fluctuations in certain years but a general upward trajectory in efficiency and profitability over the period analyzed.