Quanta Services Inc (PWR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 14.83% | 14.07% | 14.81% | 15.05% | 14.83% |
| Operating profit margin | 5.69% | 5.40% | 5.11% | 5.11% | 5.46% |
| Pretax margin | 5.12% | 4.64% | 4.12% | 4.80% | 5.10% |
| Net profit margin | 3.82% | 3.57% | 2.88% | 3.74% | 3.98% |
Quanta Services Inc's profitability ratios indicate fluctuating performance over the period from December 31, 2020, to December 31, 2024. The gross profit margin ranged from 14.07% to 15.05%, with a slight decrease in 2023 followed by a recovery in 2024. This suggests the company's ability to generate profits after accounting for the cost of goods sold remains stable overall.
Operating profit margin remained relatively consistent, ranging from 5.11% to 5.69% over the same period. This indicates that Quanta Services Inc has been able to efficiently manage its operating expenses to maintain profitability.
The pretax margin experienced some variation, decreasing from 5.10% in 2020 to 4.12% in 2022 before recovering to 5.12% in 2024. This suggests fluctuations in the company's ability to generate profits before tax, which might be influenced by factors such as changes in tax regulations or operational efficiency.
Net profit margin ranged from 2.88% to 3.98%, with a notable decrease in 2022 followed by a slight improvement in subsequent years. This ratio reflects Quanta Services Inc's overall profitability after all expenses, including taxes, indicating that the company has been able to maintain a reasonable level of net profit margin despite some fluctuations.
In conclusion, while the profitability ratios of Quanta Services Inc showed some variability over the analyzed period, the company generally demonstrated stable gross and operating profit margins, with fluctuations in pretax and net profit margins. Overall, the company's ability to generate profits and manage expenses remained relatively steady, with slight variations impacting its profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.21% | 6.95% | 6.48% | 5.16% | 7.28% |
| Return on assets (ROA) | 4.84% | 4.59% | 3.65% | 3.78% | 5.31% |
| Return on total capital | 19.33% | 18.44% | 15.57% | 12.36% | 14.02% |
| Return on equity (ROE) | 12.36% | 11.87% | 9.12% | 9.51% | 10.26% |
Quanta Services Inc's profitability ratios exhibit some fluctuations over the period from December 31, 2020, to December 31, 2024.
1. Operating return on assets (Operating ROA) shows a slight decrease from 7.28% in 2020 to 5.16% in 2021, but then gradually improves to 7.21% by 2024. This ratio suggests that the company's operating profitability in relation to its total assets has seen some volatility but has trended upwards overall.
2. Return on assets (ROA) follows a similar pattern, starting at 5.31% in 2020, dipping to 3.78% in 2021, and then recovering to 4.84% by 2024. ROA indicates the company's overall efficiency in generating profits from its assets, and the fluctuation in this metric may indicate changes in asset utilization or profitability levels during this period.
3. Return on total capital shows a more consistent increase from 14.02% in 2020 to 19.33% in 2024. This ratio reflects the company's ability to generate returns for all its capital providers, including both debt and equity holders. The steady improvement in this ratio implies that Quanta Services Inc has been effectively utilizing its total capital over the years.
4. Return on equity (ROE) also exhibits a generally upward trend, starting at 10.26% in 2020 and increasing to 12.36% by 2024. ROE signifies the return generated for the company's shareholders based on their equity investment. The rising trend in ROE suggests an enhancement in shareholder value and indicates better profitability relative to the shareholders' equity.
In conclusion, while there have been fluctuations in some profitability ratios for Quanta Services Inc, the overall trend indicates improvements in the company's operational efficiency, return generation from assets and capital, and value creation for shareholders over the analyzed period.