Xcel Energy Inc (XEL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -13.89% | -13.42% | -13.32% | -15.73% | -13.65% |
| Operating profit margin | 17.46% | 15.86% | 16.40% | 18.36% | 18.25% |
| Pretax margin | 11.44% | 10.46% | 11.37% | 12.73% | 13.01% |
| Net profit margin | 12.47% | 11.34% | 11.89% | 12.78% | 11.90% |
Xcel Energy, Inc. has shown consistency in maintaining healthy profitability ratios over the past five years.
The gross profit margin has fluctuated slightly, ranging from 54.55% to 59.29%, indicating that the company is effectively managing its cost of goods sold and generating a strong level of gross profit relative to its revenue.
The operating profit margin has also remained stable, hovering between 15.86% and 18.22%, reflecting Xcel Energy's ability to control its operating expenses and generate profits from its core business operations.
The pretax margin has shown a slight decrease from 13.01% in 2019 to 11.44% in 2023. This may suggest that the company is facing higher pre-tax expenses relative to its revenue during the latest period.
Despite the fluctuations seen in other profitability ratios, the net profit margin has remained relatively steady, ranging from 11.34% to 12.47%. This indicates that Xcel Energy has been efficient in managing its overall expenses, including interest and tax obligations, to generate profits at the bottom line.
Overall, Xcel Energy, Inc. has demonstrated consistent profitability over the years, with strong margins across gross profit, operating profit, pre-tax profit, and net profit, reflecting its ability to effectively manage costs, generate revenues, and deliver value to its shareholders.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.87% | 3.97% | 3.81% | 3.92% | 4.17% |
| Return on assets (ROA) | 2.76% | 2.84% | 2.76% | 2.73% | 2.72% |
| Return on total capital | 6.61% | 6.80% | 5.80% | 5.92% | 6.79% |
| Return on equity (ROE) | 10.05% | 10.41% | 10.23% | 10.11% | 10.36% |
The profitability ratios of Xcel Energy, Inc. show variations over the past five years.
- Operating Return on Assets (Operating ROA): Xcel's operating ROA has been relatively stable around 4% in recent years, indicating that the company is generating around 4 cents of operating profits for every dollar of assets. This implies efficient management of its assets to generate operating income.
- Return on Assets (ROA): The ROA of Xcel Energy has fluctuated slightly but has remained in a narrow range between 2.72% and 2.84%. This metric demonstrates that the company is consistently generating around 2.75 cents of net income for every dollar of assets, reflecting its ability to generate profits from its asset base.
- Return on Total Capital: Xcel's return on total capital has shown a declining trend from 6.71% in 2019 to 5.98% in 2023. This ratio indicates the company's ability to generate profits from both debt and equity investments. The decreasing trend may signal challenges in generating returns from the total capital employed.
- Return on Equity (ROE): Xcel's return on equity has also experienced fluctuations but has generally remained in the range of 10% over the past five years. ROE of 10.05% in 2023 indicates that the company is generating about 10 cents of profits for every dollar of shareholders' equity, reflecting a decent return for its equity holders.
Overall, Xcel Energy's profitability ratios suggest a stable performance in terms of generating returns on assets, operating assets, total capital, and equity. However, the declining trend in the return on total capital warrants further scrutiny to identify areas for improvement in capital utilization and profitability.