Williams Companies Inc (WMB)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 92.04% | 92.74% | 91.96% | 94.06% | 72.90% |
| Operating profit margin | 31.79% | 39.53% | 27.52% | 24.76% | 28.53% |
| Pretax margin | 27.28% | 38.36% | 22.56% | 19.08% | 3.76% |
| Net profit margin | 21.18% | 29.15% | 18.69% | 14.27% | 2.73% |
Williams Companies Inc has shown a consistent and favorable trend in its profitability ratios over the years. The gross profit margin has improved steadily from 72.90% in December 2020 to 92.04% by December 2024. This indicates that the company has been effectively managing its production costs and generating a higher proportion of revenue as gross profit.
Similarly, the operating profit margin fluctuated slightly over the years but generally remained healthy, decreasing from 28.53% in December 2020 to 31.79% by December 2024. This demonstrates the company's ability to control its operating expenses and generate profits from its core business activities.
The pretax margin experienced significant growth, starting at 3.76% in December 2020 and reaching 27.28% by December 2024. This points to the company's enhanced efficiency in managing costs before accounting for taxes, leading to higher profitability at the pre-tax level.
Lastly, the net profit margin also exhibited a positive trajectory, increasing from 2.73% in December 2020 to 21.18% by December 2024. This improvement indicates that Williams Companies Inc has been effectively managing its overall expenses, including interest and taxes, to enhance its bottom line profitability.
Overall, the trend in profitability ratios suggests that Williams Companies Inc has been successful in enhancing its operational efficiency and financial performance, leading to improved profitability over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.12% | 8.19% | 6.23% | 5.53% | 4.99% |
| Return on assets (ROA) | 4.08% | 6.04% | 4.23% | 3.19% | 0.48% |
| Return on total capital | 8.73% | 14.22% | 10.64% | 8.18% | 3.77% |
| Return on equity (ROE) | 17.89% | 25.63% | 17.84% | 13.28% | 1.79% |
Based on the provided data, we can analyze the profitability ratios of Williams Companies Inc over the period from December 31, 2020, to December 31, 2024.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA shows the company's operating income as a percentage of its total assets. Williams Companies Inc's Operating ROA has increased steadily from 4.99% in 2020 to 8.19% in 2023, with a slight decrease to 6.12% in 2024.
2. Return on Assets (ROA):
- The ROA indicates the company's net income as a percentage of total assets. Williams Companies Inc's ROA has shown improvement over the years, starting at 0.48% in 2020 and reaching 6.04% in 2023 before decreasing to 4.08% in 2024.
3. Return on Total Capital:
- This ratio reflects the company's earnings in relation to both debt and equity capital. Williams Companies Inc's Return on Total Capital has also shown a positive trend, increasing from 3.77% in 2020 to 14.22% in 2023, and then decreasing slightly to 8.73% in 2024.
4. Return on Equity (ROE):
- The ROE measures the return generated on shareholder equity. Williams Companies Inc's ROE exhibited significant growth, starting at 1.79% in 2020 and increasing to 25.63% in 2023, before settling at 17.89% in 2024.
Overall, Williams Companies Inc has demonstrated improvements in its profitability ratios over the analyzed period, reflecting efficient utilization of assets and capital to generate returns for its shareholders. The fluctuations in the ratios indicate the company's ability to adapt to changing market conditions and optimize its profitability.