Sempra Energy (SRE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 74.49% | 81.32% | 80.22% | 79.45% | 78.94% |
| Operating profit margin | 6.98% | 27.20% | 24.93% | 12.70% | 19.38% |
| Pretax margin | 23.37% | 21.32% | 18.66% | 11.02% | 35.29% |
| Net profit margin | 21.71% | 18.39% | 14.81% | 10.25% | 33.10% |
Sempra Energy's profitability ratios indicate a fluctuating performance over the years. The Gross Profit Margin has shown an overall increasing trend, improving from 78.94% in 2020 to 81.32% in 2023 before declining to 74.49% in 2024. This suggests the company's ability to efficiently control production costs and generate profits from its core operations.
In contrast, the Operating Profit Margin has been volatile, with a significant drop from 19.38% in 2020 to 6.98% in 2024, indicating challenges in managing operating expenses in relation to revenues. However, there was a notable improvement in 2022 where the margin spiked to 24.93%.
The Pretax Margin reflects the company's ability to control non-operating expenses. It started with a robust 35.29% in 2020, then decreased sharply in 2021 before recovering in the following years, reaching 23.37% in 2024. This suggests effective management of taxes and other expenses.
The Net Profit Margin, which represents the bottom-line profitability after accounting for all expenses, has also fluctuated. It declined from 33.10% in 2020 to 10.25% in 2021 before gradually improving to 21.71% in 2024. This indicates varying levels of efficiency in managing both operating and non-operating costs to generate net income.
Overall, while there have been fluctuations in profitability ratios, Sempra Energy has demonstrated resilience in maintaining profitability and managing costs over the years, though with some volatility in performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.96% | 5.22% | 4.58% | 2.27% | 3.31% |
| Return on assets (ROA) | 2.98% | 3.53% | 2.72% | 1.83% | 5.65% |
| Return on total capital | 11.88% | 8.64% | 7.26% | 5.67% | 21.79% |
| Return on equity (ROE) | 9.17% | 10.72% | 7.89% | 5.07% | 16.10% |
Based on the provided data for Sempra Energy's profitability ratios, we can observe the following trends:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA shows a fluctuating trend over the years, starting at 3.31% in 2020, dropping to 2.27% in 2021, then increasing significantly to 4.58% in 2022, reaching a peak of 5.22% in 2023, and dropping to 0.96% in 2024.
2. Return on Assets (ROA):
- The ROA reflects a similar pattern of fluctuation, starting at 5.65% in 2020, decreasing notably to 1.83% in 2021, then gradually increasing to 3.53% in 2023, and finally settling at 2.98% in 2024.
3. Return on Total Capital:
- The Return on Total Capital shows a decreasing trend over the years, with a significant drop from 21.79% in 2020 to 5.67% in 2021, followed by a gradual increase to 11.88% in 2024.
4. Return on Equity (ROE):
- The ROE also follows a declining trend, starting at 16.10% in 2020, decreasing to 5.07% in 2021, then gradually increasing to 10.72% in 2023, and finally reducing to 9.17% in 2024.
Overall, the profitability ratios of Sempra Energy demonstrate fluctuations and varying levels of performance over the years. It is essential for stakeholders to closely monitor these ratios to assess the company's ability to generate profits from its assets and capital, as well as to evaluate the returns provided to its equity shareholders.