Southwest Gas Holdings Inc (SWX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 18.76% | 20.06% | 22.31% | 24.81% |
| Operating profit margin | 9.46% | 7.70% | 23.10% | 29.64% | 12.82% |
| Pretax margin | 4.72% | 3.63% | -5.51% | 6.71% | 9.24% |
| Net profit margin | 3.89% | 2.78% | -32.71% | 5.46% | 7.04% |
Southwest Gas Holdings Inc's profitability ratios demonstrate a mixed performance over the five-year period. The gross profit margin has decreased gradually from 24.81% in 2020 to 18.76% in 2023 before significantly jumping to 100.00% in 2024, indicating a potential anomaly or adjustment in the data. However, it is essential to further investigate this sudden change.
The operating profit margin shows fluctuations, with a notable increase in 2021 to 29.64% before dropping to 7.70% in 2023 and slightly improving to 9.46% in 2024. This fluctuation suggests some volatility in the company's operational efficiency and cost management over the years.
The pretax margin depicts a mixed trend, starting at 9.24% in 2020, dropping to -5.51% in 2022, and gradually recovering in the following years. This sharp decline in 2022 could be a result of extraordinary expenses or impairments affecting the company's profitability.
Lastly, the net profit margin also displays fluctuations, with a notable decrease to -32.71% in 2022 before recovering to 3.89% in 2024. Such significant negative margin in 2022 could indicate challenges in generating profits after accounting for all expenses.
Overall, while there are some fluctuations and anomalies in the profitability ratios of Southwest Gas Holdings Inc, further analysis is crucial to understand the underlying reasons and assess the company's overall financial health and performance accurately.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.02% | 3.52% | 8.68% | 8.55% | 4.84% |
| Return on assets (ROA) | 1.65% | 1.27% | -12.29% | 1.57% | 2.66% |
| Return on total capital | 15.36% | 14.79% | -1.00% | 12.04% | 15.07% |
| Return on equity (ROE) | 5.67% | 4.56% | -53.04% | 6.80% | 8.69% |
Southwest Gas Holdings Inc's profitability ratios show varying trends over the past five years.
- Operating return on assets (Operating ROA) increased from 4.84% in 2020 to 8.55% in 2021, further improving to 8.68% in 2022. However, it declined in 2023 to 3.52% before showing a modest recovery to 4.02% in 2024. This indicates the company's ability to generate operating profit from its assets, with fluctuations reflecting changes in operational efficiency.
- Return on assets (ROA) experienced fluctuations, starting at 2.66% in 2020, dropping to 1.57% in 2021, significantly decreasing to -12.29% in 2022, and recovering slightly in the following years. A negative ROA in 2022 suggests that the company incurred a net loss relative to its total assets but managed to improve profitability in subsequent years.
- Return on total capital saw a positive trend, declining slightly from 15.07% in 2020 to 12.04% in 2021, dropping to -1.00% in 2022, and rebounding to 14.79% in 2023 and 15.36% in 2024. This ratio indicates the efficiency of the company in generating returns from its total invested capital, including debt and equity.
- Return on equity (ROE) decreased from 8.69% in 2020 to 6.80% in 2021, then sharply dropped to -53.04% in 2022, signifying a substantial decline in profitability relative to shareholders' equity. The ROE improved in 2023 and 2024, reaching 4.56% and 5.67%, respectively.
Overall, Southwest Gas Holdings Inc's profitability ratios demonstrate fluctuations in performance over the years, with improvements in some areas and challenges in others. Investors and stakeholders may need to further investigate the reasons behind these fluctuations to assess the company's long-term profitability prospects.