Name: Gross Profit Margin

Definition: Gross profit margin shows how much profit the company keeps from each dollar of sales after covering the direct cost of making its products or delivering services. High margins suggest strong pricing power or efficient production. Shrinking margins might mean rising costs or tougher competition eating into profits.

Interpretation:
• In '2021', XEL's gross profit margin was 39.1%, showing profitability after production and operational costs. Industry average for Power Generation in '2021' stood at 40.1%.
• In '2022', XEL's gross profit margin was 38.3%, showing profitability after production and operational costs. The decline from '2021' may indicate some operational or financial challenges. Industry average for Power Generation in '2022' stood at 35.9%. Industry average declined by 4.3% from previous year.
• In '2023', XEL's gross profit margin was 42.1%, showing profitability after production and operational costs. The increase since '2022' reflects strengthening financial performance. Industry average for Power Generation in '2023' stood at 34.4%. Industry average declined by 1.5% from previous year.
• In '2024', XEL's gross profit margin was 45.7%, showing profitability after production and operational costs. The increase since '2023' reflects strengthening financial performance. Industry average for Power Generation in '2024' stood at 54.9%. Industry average increased by 20.5% compared to previous year.
Overall, XEL's gross profit margin has steadily improved over the past 4 years.

Formula: Gross Profit Margin = (Revenue - COGS) / Revenue

Good Range: Often 20%-60% depending on industry.