Home / Tech & Systems / Analysts Detailing with Profitability Ratio Analysis: The AES Corporation (NYSE:AES), CenterPoint Energy, Inc. (NYSE:CNP)

Analysts Detailing with Profitability Ratio Analysis: The AES Corporation (NYSE:AES), CenterPoint Energy, Inc. (NYSE:CNP)

Moving on tracing line, The AES Corporation (NYSE:AES) need to consider for profitability analysis, in latest session share price swings at $11.57 with percentage change of -1.36%.

The Co has negative -1.90% profit margin to find consistent trends in a firm’s earnings. Gross profit margin and operating profit margin are its sub parts that firm have 18.20% and 4.10% respectively. AES has returns on investment of 2.80%. The returns on assets was -0.70% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of -8.20%, which is measuring profitability by disclosing how much profit generates by AES with the shareholders’ money.

The firm attains analyst recommendation of 2.50 on scale of 1-5 with week’s performance of -0.17%. The firm current ratio calculated as 1.20, this value is acceptable if it lies in 1.3% to 3%. But its varies industry to industry. To strengthen these views, active industry firm has Quick Ratio of 1.10, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 7.51, sometimes its remain same with long term debt to equity ratio.

Waking on tracing line of previous stocks, CenterPoint Energy, Inc. (NYSE:CNP) also making a luring appeal, share price swings at $22.37 with percentage change of 0.13% in most recent trading session.

Profitability Valuation

The profit margin can answer significantly to find consistent trends in a firm’s earnings, the Co has negative -10.70% profit margin that indicates every dollar of sales a firm actually keeps in earnings, and the larger number indicates improving and vise worse. The operating profit margin are its sub parts that firm has 13.20% respectively. Moving toward returns ratio, CNP has returns on investment of 10.80% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as -3.50% hat gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of -20.70%, which is measuring a corporation’s profitability by revealing how much profit generates by CNP with the shareholders’ money. The firm attains analyst recommendation of 2.70 on scale of 1-5 with week’s performance of 2.15%.

Moving toward ratio analysis, it has current ratio of 1.00 and quick ratio was calculated as 0.90. The debt to equity ratio appeared as 2.66 for seeing its liquidity position. The firm attains analyst recommendation of 2.70 out of 1-5 scale with week’s performance of 2.15%.

 

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