WEC Energy Group Inc (WEC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 60.07% | 50.14% | 57.06% | 64.80% | 61.16% |
| Operating profit margin | 21.46% | 20.05% | 20.62% | 23.56% | 20.36% |
| Pretax margin | 17.29% | 18.05% | 18.06% | 19.73% | 16.75% |
| Net profit margin | 14.99% | 14.68% | 15.65% | 16.59% | 15.09% |
WEC Energy Group Inc's profitability ratios have shown some fluctuations over the past five years. The gross profit margin has varied between 54.58% and 67.97%, with the latest figure standing at 64.12%. This indicates the company's ability to control production costs and generate profits from its core operations.
The operating profit margin has also experienced fluctuations, ranging from 20.05% to 23.56%, with the latest figure being 23.47%. This metric reflects the efficiency of WEC Energy Group Inc in managing both its operating expenses and revenue generation.
The pretax margin has shown a relatively stable trend over the years, with values fluctuating between 16.74% and 19.74%. The company's ability to manage its pre-tax profits in relation to its total revenue is crucial for its overall financial health, and the latest figure of 17.28% indicates solid performance in this area.
Similarly, the net profit margin has displayed slight variations, with values ranging from 14.67% to 16.57%. The latest figure of 14.97% reflects the company's ability to translate its revenue into net income after accounting for all expenses, including taxes.
Overall, WEC Energy Group Inc has demonstrated reasonable profitability across its operations, with consistent performance in generating profits relative to its total revenue over the years, albeit with some fluctuations in certain periods.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.34% | 4.60% | 4.40% | 4.61% | 4.38% |
| Return on assets (ROA) | 3.03% | 3.37% | 3.34% | 3.24% | 3.25% |
| Return on total capital | 7.04% | 7.38% | 7.02% | 7.69% | 7.18% |
| Return on equity (ROE) | 11.34% | 12.35% | 11.89% | 11.44% | 11.19% |
Based on the provided data, we can see a fluctuation in the profitability ratios of WEC Energy Group Inc over the past five years.
1. Operating Return on Assets (Operating ROA): This ratio measures the company's operating income generated per dollar of assets. WEC Energy Group Inc has shown a consistent improvement in its operating ROA from 4.38% in 2019 to 4.75% in 2023, indicating that the company has been able to generate more operating income relative to its assets over time.
2. Return on Assets (ROA): This ratio measures the company's overall profitability in generating earnings from its total assets. WEC Energy Group Inc has experienced some fluctuations in its ROA, with a peak of 3.36% in 2022 and a slight decline to 3.03% in 2023. This implies that the company's ability to generate profits from its total assets has varied slightly over the years.
3. Return on Total Capital: This ratio evaluates the return earned on all of the company's invested capital, including debt and equity. WEC Energy Group Inc has shown a consistent performance in this ratio, ranging from 7.06% in 2021 to 7.59% in 2020, which suggests that the company has been efficiently utilizing both debt and equity capital to generate returns for its stakeholders.
4. Return on Equity (ROE): This ratio measures the return earned on shareholders' equity investments in the company. WEC Energy Group Inc has maintained a relatively stable ROE over the past five years, with a range between 11.18% in 2019 and 12.34% in 2022. This indicates that the company has been effectively generating profits from shareholders' equity.
In conclusion, WEC Energy Group Inc has demonstrated overall sound profitability performance based on these key ratios, with improvements in operating ROA and consistent returns on total capital and equity, despite some fluctuations in ROA.