WEC Energy Group Inc (WEC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.02% | 40.50% | 34.39% | 36.07% | 39.91% |
| Operating profit margin | 25.03% | 21.46% | 20.05% | 20.62% | 23.56% |
| Pretax margin | 20.31% | 17.28% | 18.05% | 18.02% | 19.74% |
| Net profit margin | 17.72% | 14.99% | 14.68% | 15.65% | 16.59% |
Based on the provided data, WEC Energy Group Inc's profitability ratios have shown various trends over the five-year period from 2020 to 2024.
1. Gross Profit Margin:
- The gross profit margin measures the percentage of revenue that exceeds the cost of goods sold.
- WEC Energy Group's gross profit margin declined from 39.91% in 2020 to 34.39% in 2022 but then showed an increasing trend to reach 44.02% in 2024.
- The rebound in the gross profit margin from 2022 to 2024 indicates an improvement in the company's ability to generate profit after accounting for the cost of goods sold.
2. Operating Profit Margin:
- The operating profit margin reflects the company's ability to generate profit from its core operations.
- WEC Energy Group's operating profit margin decreased from 23.56% in 2020 to 20.05% in 2022, but then increased to 25.03% in 2024.
- The upward trend in the operating profit margin suggests that the company's operational efficiency improved from 2022 to 2024, resulting in higher profitability from its core business activities.
3. Pretax Margin:
- The pretax margin indicates the percentage of profit the company earns before paying taxes.
- WEC Energy Group's pretax margin declined from 19.74% in 2020 to 17.28% in 2023 before increasing to 20.31% in 2024.
- The recovery in the pretax margin in 2024 signifies an improvement in the company's profitability before accounting for tax expenses.
4. Net Profit Margin:
- The net profit margin represents the percentage of revenue that translates into net income.
- WEC Energy Group's net profit margin decreased from 16.59% in 2020 to 14.68% in 2022 but then showed a continuous improvement to reach 17.72% in 2024.
- The rising trend in the net profit margin from 2022 to 2024 indicates that the company became more effective in converting revenue into profits after accounting for all expenses.
Overall, WEC Energy Group Inc demonstrated varying profitability ratios over the five-year period, with improvements in profitability margins observed from 2022 to 2024, reflecting enhanced operational efficiency and profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.55% | 4.34% | 4.60% | 4.40% | 4.61% |
| Return on assets (ROA) | 3.22% | 3.03% | 3.37% | 3.34% | 3.24% |
| Return on total capital | 17.47% | 19.25% | 17.78% | 16.33% | 16.64% |
| Return on equity (ROE) | 12.30% | 11.34% | 12.35% | 11.89% | 11.44% |
Based on the provided data for WEC Energy Group Inc, the profitability ratios can be analyzed as follows:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has been relatively stable over the past five years, ranging between 4.34% to 4.61%.
- This ratio indicates that for every dollar of assets the company has, it generated operating income ranging from 4.34% to 4.61%.
2. Return on Assets (ROA):
- The ROA has shown a slight fluctuation over the years, with values ranging from 3.03% to 3.37%.
- This ratio reflects the company's ability to generate profit from its total assets, with lower values indicating less efficiency in asset utilization.
3. Return on Total Capital:
- The Return on Total Capital has shown an increasing trend from 16.33% in 2021 to 19.25% in 2023, with a slight decrease to 17.47% in 2024.
- This ratio measures the return generated by the company from all capital sources, including debt and equity.
4. Return on Equity (ROE):
- The ROE has also shown a fluctuating pattern over the years, ranging from 11.34% to 12.35%.
- ROE indicates the return generated by the company for every dollar of shareholder equity, with higher values suggesting better profitability for the shareholders.
Overall, WEC Energy Group Inc has maintained stable profitability ratios over the years, with some fluctuations observed in ROA and ROE. The Return on Total Capital has shown an increasing trend, indicating improved returns generated from all capital sources.