Southwest Gas Holdings Inc (SWX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 42.09% | 40.83% | 40.20% | 39.90% | 37.64% | 36.29% | 36.08% | 35.80% | 34.60% | 34.78% | 35.26% | 35.75% | 35.59% | 36.29% | 36.75% | 36.98% | 37.86% | 36.35% | 37.45% | 37.43% |
| Operating profit margin | 7.70% | -0.15% | -0.34% | -1.09% | -0.49% | 8.17% | 8.00% | 8.98% | 10.04% | 11.65% | 12.89% | 13.38% | 12.82% | 12.63% | 12.39% | 12.16% | 11.92% | 12.05% | 12.32% | 12.45% |
| Pretax margin | 3.55% | -4.82% | -5.15% | -6.13% | -5.62% | 3.68% | 3.89% | 5.23% | 6.53% | 8.34% | 9.71% | 10.38% | 9.04% | 8.77% | 8.43% | 7.95% | 8.65% | 8.33% | 8.74% | 8.82% |
| Net profit margin | 2.78% | -3.69% | -4.01% | -4.79% | -4.10% | 3.18% | 3.37% | 4.42% | 5.46% | 6.68% | 7.74% | 8.27% | 7.04% | 6.82% | 6.55% | 6.14% | 6.86% | 6.26% | 6.61% | 6.69% |
Southwest Gas Holdings Inc's profitability ratios have shown mixed performance over the past eight quarters.
- The gross profit margin has been gradually decreasing from 83.89% in Q4 2022 to 76.94% in Q4 2023. This indicates a decline in the company's ability to generate profits after accounting for the cost of goods sold.
- The operating profit margin has been relatively stable, fluctuating between 8.17% and 9.45% over the same period. This suggests that the company has been efficient in managing its operating expenses to maintain profitability.
- The pretax margin has shown significant volatility, with negative margins in Q3 and Q2 of 2023. This indicates that the company's income before taxes has been inconsistent and at times insufficient to cover operating costs.
- The net profit margin has also been erratic, with negative margins in Q2, Q3, and Q4 of 2023. This highlights the challenges Southwest Gas Holdings Inc has faced in generating bottom-line profits after accounting for all expenses and taxes.
In general, the company's profitability is showing signs of weakness, as seen in declining gross profit margins and inconsistent net profit margins. Management may need to focus on cost controls and revenue-generating strategies to improve overall profitability in the future.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.52% | -0.07% | -0.16% | -0.49% | -0.18% | 2.88% | 2.72% | 2.75% | 2.89% | 3.94% | 4.87% | 5.02% | 4.84% | 4.84% | 4.66% | 4.69% | 4.55% | 4.70% | 4.82% | 4.87% |
| Return on assets (ROA) | 1.27% | -1.71% | -1.83% | -2.15% | -1.54% | 1.12% | 1.15% | 1.36% | 1.57% | 2.26% | 2.92% | 3.10% | 2.66% | 2.62% | 2.46% | 2.37% | 2.62% | 2.44% | 2.59% | 2.62% |
| Return on total capital | 6.12% | 0.37% | 0.09% | -0.67% | -0.49% | 4.03% | 4.25% | 4.42% | 5.09% | 6.21% | 8.22% | 8.31% | 7.57% | 7.45% | 7.20% | 7.40% | 7.89% | 7.40% | 7.64% | 8.11% |
| Return on equity (ROE) | 4.56% | -6.25% | -6.68% | -7.69% | -6.65% | 4.31% | 4.28% | 5.15% | 6.80% | 8.05% | 9.28% | 9.99% | 8.69% | 8.42% | 7.95% | 7.52% | 8.54% | 7.90% | 8.20% | 8.44% |
Southwest Gas Holdings Inc's profitability ratios show fluctuations over the past eight quarters. The operating return on assets (Operating ROA) has been relatively consistent, ranging from 2.72% to 4.38%. This indicates the company's ability to generate operating profits from its assets, with a peak performance in Q3 2023.
Return on assets (ROA) fluctuated significantly from negative values to positive values, showing inconsistency in generating overall profits from all assets. Q4 2023 saw a notable improvement with a ROA of 1.27%.
Return on total capital ranged from 3.68% to 6.08%, demonstrating the return generated from all forms of capital invested in the company. Q3 2023 had the highest return on total capital.
Return on equity (ROE) also fluctuated significantly, varying from negative values to positive values. Q1 2022 had the highest ROE at 5.15%, while Q2 and Q3 of 2023 reported negative returns, reflecting challenges in generating profits for the shareholders.
Overall, Southwest Gas Holdings Inc's profitability ratios exhibit variability, with some quarters showing improvement in profitability metrics while others displaying challenges in generating returns for both assets and equity holders.