Southwestern Energy Company (SWN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 78.41% | 97.94% | 94.33% | -21.63% | 94.07% |
| Operating profit margin | -11.08% | 77.05% | 65.84% | -116.09% | 8.29% |
| Pretax margin | 14.78% | 19.91% | -0.62% | -109.38% | 14.75% |
| Net profit margin | 17.71% | 19.37% | -0.62% | -125.84% | 27.37% |
Southwestern Energy Company's profitability ratios have shown significant fluctuations over the past five years. The gross profit margin has remained consistently robust at 100% across all years, indicating effective cost management and pricing strategies.
The operating profit margin has varied widely, with a notable decrease in 2023 compared to the high of 49.20% in 2022. This suggests that the company's operational efficiency has fluctuated, potentially due to changes in expenses or revenues.
The pretax margin also displays significant volatility, with a negative margin in 2020 and 2021, indicating that the company incurred losses before taxes during those years. However, the margin improved in 2023, reaching 19.93%, reflecting a stronger pre-tax profitability performance.
Similarly, the net profit margin has shown fluctuations, with a negative margin in 2020, 2021, and 2019. The positive net profit margin in 2023 at 23.87% indicates that the company was able to generate profits after all expenses, including taxes, during that year.
Overall, while Southwestern Energy Company has displayed resilience in maintaining a high gross profit margin, there are notable fluctuations in the operating profit margin, pretax margin, and net profit margin, suggesting ups and downs in the company's profitability performance over the past five years. Further analysis would be necessary to understand the specific factors driving these fluctuations and to assess the company's overall financial health.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -8.12% | 56.89% | 22.24% | -55.64% | 4.02% |
| Return on assets (ROA) | 12.98% | 14.30% | -0.21% | -60.31% | 13.26% |
| Return on total capital | 14.66% | 23.91% | 1.43% | -71.59% | 9.93% |
| Return on equity (ROE) | 26.44% | 42.76% | -0.98% | -626.16% | 27.45% |
Southwestern Energy Company's profitability ratios show a mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated significantly, with a notable increase in 2022 followed by a decline in 2023. This ratio indicates that the company generated 6.14% of operating income from its assets in 2023.
2. Return on assets (ROA) has shown improvement in recent years, reaching 12.98% in 2023. This ratio reflects the company's ability to generate profit from its total assets, indicating a positive trend in profitability.
3. Return on total capital demonstrates a similar pattern to ROA, with a significant surge in 2022 followed by a slight decrease in 2023. In 2023, the company earned a return of 7.48% on its total capital.
4. Return on equity (ROE) has been volatile, with sharp fluctuations over the years. ROE improved in 2023, showing a return of 26.44%, indicating that the company generated a reasonable return for its shareholders' equity.
Overall, Southwestern Energy Company's profitability ratios reflect a mix of positive and negative trends. It is important for investors and stakeholders to closely monitor these ratios to assess the company's financial performance and sustainability.