PPL Corporation (PPL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 90.70% | 90.71% | 90.79% | 90.89% | 91.11% | 90.60% | 89.91% | 88.17% | 87.05% | 86.35% | 86.15% | 86.98% | 86.94% | 96.97% | 105.96% | 115.64% | 127.27% | 118.05% | 108.97% | 101.19% |
| Operating profit margin | 20.56% | 21.17% | 21.33% | 20.45% | 19.61% | 18.39% | 17.09% | 16.61% | 17.39% | 18.97% | 22.18% | 24.11% | 24.62% | 26.35% | 26.99% | 28.51% | 28.97% | 31.39% | 33.23% | 34.82% |
| Pretax margin | 13.19% | 12.40% | 12.63% | 11.56% | 11.12% | 12.15% | 11.18% | 11.41% | 12.11% | 12.61% | 14.49% | 18.97% | -16.89% | -14.48% | -11.39% | -11.08% | 32.57% | 27.47% | 27.48% | 27.38% |
| Net profit margin | 10.49% | 9.95% | 10.17% | 9.29% | 8.90% | 9.53% | 8.79% | 9.00% | 9.57% | 9.86% | 11.32% | 10.43% | -25.59% | -23.36% | -22.49% | -16.72% | 26.84% | 25.47% | 26.36% | 25.72% |
PPL Corporation's profitability ratios show varying trends over the periods provided.
1. Gross Profit Margin: The gross profit margin indicates the efficiency of the company's operations in generating profit after deducting the cost of goods sold. PPL Corporation's gross profit margin declined from over 100% in 2020 to around 90% by 2024, indicating a decrease in efficiency in generating profits from its core operations.
2. Operating Profit Margin: The operating profit margin reflects the company's ability to generate profit from its core business activities. PPL Corporation's operating profit margin also showed a declining trend, decreasing from around 35% in 2020 to approximately 20% by 2024, suggesting challenges in controlling operating expenses.
3. Pretax Margin: The pretax margin is a measure of the company's profitability before taxes. PPL Corporation experienced fluctuations in its pretax margin over the period, with negative margins in 2021, indicating financial difficulties, followed by a recovery in subsequent years to around 13% by the end of 2024.
4. Net Profit Margin: The net profit margin represents the company's profitability after all expenses, including taxes. PPL Corporation's net profit margin improved from negative margins in 2021 to around 10% by the end of 2024, indicating a recovery in overall profitability.
Overall, PPL Corporation showed challenges in maintaining profitability ratios in the early years of the period but managed to improve its margins gradually, indicating a potential turnaround in profitability performance. Monitoring these ratios will be crucial for assessing the company's ability to sustain and enhance profitability in the future.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.24% | 4.33% | 4.42% | 4.23% | 4.15% | 4.08% | 3.86% | 3.70% | 3.63% | 3.60% | 3.87% | 4.29% | 4.29% | 4.37% | 4.08% | 3.30% | 3.30% | 3.97% | 4.71% | 5.36% |
| Return on assets (ROA) | 2.16% | 2.04% | 2.11% | 1.92% | 1.89% | 2.11% | 1.99% | 2.01% | 2.00% | 1.87% | 1.98% | 1.86% | -4.45% | -3.87% | -3.40% | -1.94% | 3.05% | 3.22% | 3.73% | 3.96% |
| Return on total capital | 6.17% | 5.71% | 5.84% | 5.46% | 5.57% | 5.92% | 5.57% | 5.41% | 5.48% | 5.08% | 5.59% | 8.25% | -0.24% | 0.57% | 1.19% | 0.08% | 8.96% | 5.78% | 6.63% | 7.33% |
| Return on equity (ROE) | 6.31% | 5.85% | 5.97% | 5.42% | 5.31% | 5.83% | 5.45% | 5.47% | 5.43% | 5.04% | 5.28% | 4.57% | -10.78% | -9.08% | -8.36% | -8.01% | 10.98% | 11.27% | 13.32% | 13.85% |
PPL Corporation's profitability ratios show fluctuations over the periods analyzed.
- Operating Return on Assets (Operating ROA): The Operating ROA ranged from a high of 5.36% in March 2020 to a low of 3.60% in September 2022. It generally decreased from 2020 to 2022 but saw a slight increase in the later periods, reaching 4.42% in June 2024.
- Return on Assets (ROA): The ROA had some negative values in the initial periods, indicating the company faced challenges in generating profits relative to its assets. However, it improved over time, reaching 2.16% in December 2024.
- Return on Total Capital: The Return on Total Capital fluctuated, with a significant drop from 8.96% in December 2020 to -0.24% in December 2021. It gradually recovered and stabilized around 5.71% to 6.17% from June 2024 to December 2024.
- Return on Equity (ROE): The ROE experienced negative values in the first half of 2021, indicating a period of poor performance in generating profits relative to shareholder equity. It improved thereafter, reaching 6.31% in December 2024.
Overall, PPL Corporation's profitability ratios reflect a mixed performance, with improvements in profitability metrics in later periods after facing challenges earlier. Continued monitoring of these ratios will be essential to assess the company's ability to generate returns for its stakeholders.