Talen Energy(Tln) Financials: Net Profit Margin Compared To Industry Average, Plus Other Key Ratios

Company Report for TLN

Report - net profit margin

This chart shows the historical trend of net profit margin for TLN compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Net Profit Margin

Definition: Net profit margin shows how much profit remains after paying all costs — including operating expenses, interest, and taxes — for every dollar of sales. A higher margin means the business is efficient and keeps more of its sales as bottom-line profit. Falling margins may signal rising costs or pricing pressure.

Interpretation:
• In '2020', TLN's net profit margin was -37.0%, measuring the overall profitability of the company. Industry average for Electric Utilities: Central in '2020' stood at -37.0%.
• In '2021', TLN's net profit margin was -55.0%, measuring the overall profitability of the company. The decline from '2020' may indicate some operational or financial challenges. Industry average for Electric Utilities: Central in '2021' stood at 6.6%. Industry average increased by 43.6% compared to previous year.
• In '2022', TLN's net profit margin was -53.4%, measuring the overall profitability of the company. The increase since '2021' reflects strengthening financial performance. Industry average for Electric Utilities: Central in '2022' stood at 8.1%. Industry average increased by 1.5% compared to previous year.
• In '2024', TLN's net profit margin was 48.1%, measuring the overall profitability of the company. The increase since '2022' reflects strengthening financial performance. Industry average for Electric Utilities: Central in '2024' stood at -0.3%. Industry average declined by 8.4% from previous year.
Overall, TLN's net profit margin has been volatile but showed an upward trend over the past 4 years.

Formula: Net Profit Margin = Net Income / Revenue

Good Range: Ranges 5%-20% for many industries.