Vistra Energy Corp (VST)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 89.92% | 89.85% | 89.68% | 86.63% | 91.04% |
| Operating profit margin | 18.01% | -8.57% | -12.54% | 13.27% | 16.88% |
| Pretax margin | 13.54% | -11.49% | -14.34% | 7.88% | 10.31% |
| Net profit margin | 10.10% | -8.94% | -10.55% | 5.56% | 7.86% |
Vistra Corp's profitability ratios have exhibited significant fluctuation over the past five years. The gross profit margin, which reflects the company's ability to generate profit from its core operations after accounting for the cost of goods sold, saw a substantial increase in 2023 compared to the previous years, reaching 48.87%. This could indicate improved efficiency in managing production costs.
The operating profit margin, a measure of the company's operating efficiency and profitability, rebounded in 2023 to 18.34%, after recording negative figures in the two preceding years. This suggests that Vistra Corp managed to control its operating expenses and enhance operational performance during the latest fiscal year.
The pretax margin, representing the company's profitability before accounting for taxes, showed a notable increase in 2023 to 13.53%, indicating improved overall profitability compared to the previous years when it was negative. This improvement could be attributed to better cost management and revenue generation efforts.
Lastly, the net profit margin, which shows the proportion of revenue that translates into net income, also exhibited an upward trend in 2023, reaching 9.09%. Despite years of negative net profit margins, the company managed to achieve positive profitability in the latest fiscal period, reflecting potentially successful turnaround strategies.
Overall, Vistra Corp's profitability ratios have shown positive signs of improvement in 2023, potentially indicating enhanced operational efficiency and profitability compared to the challenging performance recorded in the prior years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.07% | -3.59% | -5.10% | 6.03% | 7.49% |
| Return on assets (ROA) | 4.53% | -3.74% | -4.29% | 2.52% | 3.49% |
| Return on total capital | 51.65% | -24.66% | -16.26% | 18.30% | 25.32% |
| Return on equity (ROE) | 28.13% | -25.03% | -15.37% | 7.60% | 11.66% |
Vistra Corp's profitability ratios show a mixed performance over the past five years.
1. Operating return on assets (Operating ROA): This ratio measures the company's operating profit as a percentage of its total assets. Vistra Corp has shown a positive trend in its Operating ROA, improving from -4.86% in 2021 to 8.22% in 2023. This indicates that the company has become more efficient in generating operating profits from its asset base.
2. Return on assets (ROA): ROA measures the company's overall profitability by evaluating how well it utilizes its assets to generate profits. Vistra Corp's ROA has been inconsistent, with negative figures in 2020 and 2022. The positive ROA of 4.07% in 2023 suggests a slight improvement in the company's profitability.
3. Return on total capital: This ratio assesses the company's ability to generate returns for both its debt and equity holders. Vistra Corp has shown a significant improvement in its Return on Total Capital, increasing from -7.50% in 2021 to 13.75% in 2023. This indicates that the company has been more effective in generating returns for its total capital providers.
4. Return on equity (ROE): ROE measures the company's profitability in relation to its shareholders' equity. Vistra Corp's ROE has been volatile, with a sharp decline in 2022 followed by a significant improvement to 25.31% in 2023. This suggests that the company has been more successful in generating profits for its shareholders in the most recent year.
Overall, while Vistra Corp has shown improvements in some profitability ratios like Operating ROA and Return on Total Capital, there are still fluctuations and challenges in other ratios like ROA and ROE. Continued monitoring and analysis are necessary to assess the company's sustained profitability and value creation for its stakeholders.