Southwest Gas Holdings Inc (SWX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.09% | 37.64% | 34.60% | 35.59% | 37.86% |
| Operating profit margin | 7.70% | -0.49% | 10.04% | 12.82% | 11.92% |
| Pretax margin | 3.55% | -5.62% | 6.53% | 9.04% | 8.65% |
| Net profit margin | 2.78% | -4.10% | 5.46% | 7.04% | 6.86% |
Southwest Gas Holdings Inc has shown a declining trend in profitability ratios over the past five years. The gross profit margin has decreased from 87.65% in 2019 to 76.94% in 2023, indicating a decrease in profitability on sales after accounting for direct costs. The operating profit margin has also shown a slight decrease from 11.92% in 2019 to 9.01% in 2023, suggesting a decline in operational efficiency.
The pretax margin, which reflects the company's profitability before taxes, has been volatile, with a negative value in 2022 and a lower positive value in 2023 compared to previous years. This indicates challenges in maintaining consistent profitability levels over the years.
The net profit margin, which represents the company's bottom-line profitability after all expenses have been deducted, has also fluctuated, with a negative value in 2022 and lower positive values in 2021 and 2023 compared to 2019 and 2020.
Overall, the declining trend in profitability ratios for Southwest Gas Holdings Inc raises concerns about the company's ability to generate profits efficiently and sustainably. Further analysis of the company's cost structure, revenue streams, and operational efficiency is warranted to identify the underlying factors contributing to this decline in profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.52% | -0.18% | 2.89% | 4.84% | 4.55% |
| Return on assets (ROA) | 1.27% | -1.54% | 1.57% | 2.66% | 2.62% |
| Return on total capital | 6.12% | -0.49% | 5.09% | 7.57% | 7.89% |
| Return on equity (ROE) | 4.56% | -6.65% | 6.80% | 8.69% | 8.54% |
Southwest Gas Holdings Inc's profitability ratios exhibit varying trends over the past five years.
- Operating return on assets (Operating ROA) has shown a fluctuating pattern, with a peak of 4.84% in 2020, followed by a slight decline in recent years.
- Return on assets (ROA) has been inconsistent, with negative performance in 2022 but positive returns in other years.
- Return on total capital has also shown fluctuations, peaking at 7.62% in 2020 but with a generally decreasing trend in recent years.
- Return on equity (ROE) has demonstrated a similar pattern to ROA, with negative returns in 2022 but strong performance in other years.
Overall, Southwest Gas Holdings Inc's profitability ratios suggest a mixed performance in generating returns for shareholders and effectively utilizing assets and capital. Further analysis would be required to understand the factors driving these trends and assess the company's future profitability prospects.