Williams Companies Inc (WMB)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 92.74% | 91.96% | 94.06% | 72.90% | 82.87% |
| Operating profit margin | 39.53% | 27.52% | 24.76% | 28.53% | 23.42% |
| Pretax margin | 38.36% | 22.56% | 19.08% | 3.76% | 14.45% |
| Net profit margin | 29.15% | 18.69% | 14.27% | 2.73% | 10.36% |
Williams Cos Inc has shown a consistent upward trend in its profitability ratios over the past five years. The gross profit margin, which measures the percentage of revenue retained after deducting the cost of goods sold, has improved steadily from 63.01% in 2021 to 82.73% in 2023. This suggests the company has been able to effectively control its production costs and increase its profitability.
The operating profit margin, which indicates the efficiency of the company's core operations in generating profit, has also shown positive growth, increasing from 24.91% in 2021 to 38.07% in 2023. This demonstrates the company's ability to manage its operating expenses effectively while generating revenue.
Similarly, the pretax margin, which represents the profitability of the company before accounting for taxes, has significantly improved over the years, rising from 19.51% in 2021 to 40.39% in 2023. This indicates that the company has been successful in increasing its profitability at the operating level before considering tax implications.
The net profit margin, which reflects the percentage of revenue that translates into net income, has also seen a substantial improvement, climbing from 14.25% in 2021 to 29.12% in 2023. This indicates that the company has been able to control its overall expenses and increase its bottom-line profitability.
Overall, based on these profitability ratios, it can be inferred that Williams Cos Inc has made significant progress in enhancing its operational efficiency and profitability over the past five 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) | 8.19% | 6.23% | 5.53% | 4.99% | 4.17% |
| Return on assets (ROA) | 6.04% | 4.23% | 3.19% | 0.48% | 1.85% |
| Return on total capital | 14.22% | 10.64% | 8.18% | 3.77% | 6.13% |
| Return on equity (ROE) | 25.63% | 17.84% | 13.28% | 1.79% | 6.36% |
Williams Cos Inc has shown a consistent improvement in its profitability ratios over the past five years. The Operating return on assets (Operating ROA) has been increasing steadily, indicating that the company is effectively generating operating profits relative to its total assets. The Return on assets (ROA) has also shown an upward trend, reflecting the company's ability to generate profits from its total assets.
The Return on total capital has been increasing over the years, indicating that the company is efficiently utilizing both its debt and equity capital to generate profits. This ratio provides a comprehensive view of the company's overall profitability.
The Return on equity (ROE) has experienced significant growth, indicating that the company is generating strong returns for its shareholders. This ratio measures the efficiency with which the company is utilizing its equity to generate profits.
Overall, Williams Cos Inc's profitability ratios demonstrate a positive trend, indicating improved operational efficiency and profitability over the years. Investors may view these improving ratios as a positive sign of the company's financial health and potential for future growth.