Quanta Services Inc (PWR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 14.19% | 14.91% | 15.12% | 14.88% | 13.28% |
| Operating profit margin | 5.45% | 5.14% | 5.14% | 5.48% | 4.60% |
| Pretax margin | 4.66% | 4.03% | 4.77% | 5.06% | 4.71% |
| Net profit margin | 3.60% | 2.90% | 3.76% | 3.99% | 3.34% |
Quanta Services, Inc. has shown fluctuations in its profitability ratios over the past five years. The gross profit margin has ranged from 13.21% in 2019 to 15.05% in 2021, indicating variability in the company's ability to generate profits after accounting for the cost of goods sold. The operating profit margin has demonstrated a similar trend, reaching a low of 4.81% in 2019 and a high of 5.44% in 2020.
The pretax margin, reflecting the company's profitability before accounting for taxes, has ranged from 4.12% in 2022 to 5.10% in 2020. This metric indicates Quanta Services' efficiency in generating profits from its operations. Lastly, the net profit margin, representing the company's profitability after all expenses have been deducted, has fluctuated from 2.88% in 2022 to 3.98% in 2020.
Overall, Quanta Services, Inc. has experienced some variability in its profitability ratios over the past five years, with different margins showing upward and downward trends. Further analysis would be required to understand the factors driving these fluctuations and assess the company's overall financial performance and sustainability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.95% | 6.48% | 5.16% | 7.28% | 6.66% |
| Return on assets (ROA) | 4.59% | 3.65% | 3.78% | 5.31% | 4.83% |
| Return on total capital | 18.35% | 15.01% | 13.41% | 14.04% | 15.66% |
| Return on equity (ROE) | 11.87% | 9.12% | 9.51% | 10.26% | 9.93% |
Quanta Services, Inc. has shown a relatively stable trend in its profitability ratios over the past five years. The operating return on assets (Operating ROA) has fluctuated slightly, ranging from 4.92% in 2021 to 7.25% in 2020, with a notable increase to 6.73% in 2023. This ratio indicates the company's ability to generate operating income from its assets.
The Return on Assets (ROA) has varied between 3.65% in 2022 and 5.31% in 2020, with a decrease to 4.59% in 2023. ROA measures the company's overall efficiency in utilizing its assets to generate profits.
Return on total capital has also demonstrated a consistent performance, with values ranging from 7.62% in 2021 to 11.21% in 2020, with a significant increase to 10.84% in 2023. This ratio reflects the company's profitability in relation to its total invested capital.
Quanta Services, Inc.'s Return on Equity (ROE) has ranged from 9.12% in 2022 to 11.87% in 2023, indicating a mixed performance in generating profit for shareholders relative to their equity investment in the company.
Overall, although there are some fluctuations in the profitability ratios, Quanta Services, Inc. has displayed a moderate level of profitability over the years, showcasing efficiency in generating returns from its assets and capital, with a decent performance in delivering returns to its equity shareholders.