Xcel Energy Inc (XEL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 45.74% | 41.77% | 38.28% | 39.15% | 43.07% |
| Operating profit margin | 17.75% | 17.46% | 15.86% | 16.40% | 18.36% |
| Pretax margin | 11.41% | 11.44% | 10.46% | 11.37% | 12.73% |
| Net profit margin | 14.40% | 12.47% | 11.34% | 11.89% | 12.78% |
Xcel Energy Inc's profitability ratios show varying trends over the years. The gross profit margin decreased from 43.07% in 2020 to 38.28% in 2022 but then increased to 45.74% in 2024, indicating fluctuations in the company's ability to generate profit after deducting the cost of goods sold.
Similarly, the operating profit margin declined from 18.36% in 2020 to 15.86% in 2022 before slightly improving to 17.75% in 2024. This metric highlights Xcel Energy's efficiency in managing its operating expenses relative to its revenue.
The pretax margin followed a similar pattern, decreasing from 12.73% in 2020 to 10.46% in 2022 and then slightly recovering to 11.41% in 2024. This ratio reflects the earnings generated by the company before taxes relative to its total revenue.
On the positive side, the net profit margin increased from 12.78% in 2020 to 14.40% in 2024, indicating an upward trend in Xcel Energy's ability to convert revenue into net income after accounting for all expenses.
Overall, while the company experienced fluctuations in its profitability margins, the improving trend in the net profit margin suggests a positive trajectory in Xcel Energy Inc's bottom-line performance. However, continued monitoring of the profitability ratios is advised to assess the company's ongoing financial health and operational efficiency.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.41% | 3.87% | 3.97% | 3.81% | 3.92% |
| Return on assets (ROA) | 2.76% | 2.76% | 2.84% | 2.76% | 2.73% |
| Return on total capital | 14.29% | 14.92% | 14.75% | 14.12% | 14.46% |
| Return on equity (ROE) | 9.92% | 10.05% | 10.41% | 10.23% | 10.11% |
Xcel Energy Inc's profitability ratios show a consistent performance over the period analyzed.
1. Operating Return on Assets (Operating ROA): Xcel Energy Inc's Operating ROA has fluctuated slightly but remained relatively stable, ranging from 3.81% to 3.97%. This ratio indicates that the company generated approximately 3.81% to 3.97% of operating income for each dollar of assets employed in its operations.
2. Return on Assets (ROA): The company's ROA hovered around 2.76% for most of the period, showing a consistent performance in generating net income relative to its total assets. This ratio signifies that Xcel Energy Inc generated around 2.76% return on its total assets.
3. Return on Total Capital: Xcel Energy Inc's Return on Total Capital remained relatively strong, ranging from 14.12% to 14.92%. This ratio indicates the company's ability to generate profits from all its capital sources, including debt and equity.
4. Return on Equity (ROE): The company's ROE declined slightly from 10.23% to 9.92% during the period. This ratio shows the return generated on shareholders' equity and indicates a modest decline in the company's profitability in relation to its shareholders' investment.
Overall, Xcel Energy Inc has maintained a decent level of profitability, with consistent returns on assets and total capital. However, there is a slight decline in the return on equity, suggesting a need for the company to focus on enhancing shareholder value.