Net Profit Margin
since 2010
Calculation
Kinder Morgan Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss) attributable to Kinder Morgan, Inc.1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 16.58% | = | 100 | × | 2,190) | ÷ | 13,209) |
| Dec 31, 2018 | 11.38% | = | 100 | × | 1,609) | ÷ | 14,144) |
| Dec 31, 2017 | 1.34% | = | 100 | × | 183) | ÷ | 13,705) |
| Dec 31, 2016 | 5.42% | = | 100 | × | 708) | ÷ | 13,058) |
| Dec 31, 2015 | 1.76% | = | 100 | × | 253) | ÷ | 14,403) |
| Dec 31, 2014 | 6.32% | = | 100 | × | 1,026) | ÷ | 16,226) |
| Dec 31, 2013 | 8.48% | = | 100 | × | 1,193) | ÷ | 14,070) |
| Dec 31, 2012 | 3.16% | = | 100 | × | 315) | ÷ | 9,973) |
| Dec 31, 2011 | 7.19% | = | 100 | × | 594) | ÷ | 8,265) |
| Dec 31, 2010 | -0.50% | = | 100 | × | (41) | ÷ | 8,191) |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 US$ in millions
The financial performance between 2010 and 2019 is characterized by significant volatility in profitability, followed by a substantial expansion in margins during the final two years of the period. While revenues peaked in 2014, net profit margins did not reach their maximum until 2019, indicating a decoupling of top-line growth from bottom-line efficiency.
- Profitability Volatility (2010–2017)
- The initial eight-year period shows inconsistent profit margins, fluctuating between a low of -0.50% in 2010 and a high of 8.48% in 2013. Notable contractions occurred in 2012, 2015, and 2017, with the 2017 margin dropping to 1.34%. This volatility suggests a period of instability in cost management or fluctuating operational expenses relative to revenue generation.
- Revenue and Margin Divergence
- Revenue grew steadily from 8,191 million USD in 2010 to a peak of 16,226 million USD in 2014. However, the net profit margin in 2014 (6.32%) was lower than the margin achieved in 2013 (8.48%), despite the increase in revenue. This indicates that revenue growth during the early to mid-decade did not linearly translate into increased profit efficiency.
- Margin Expansion (2018–2019)
- A sharp upward trend in profitability is observed starting in 2018. The net profit margin increased to 11.38% in 2018 and further climbed to 16.58% in 2019. This acceleration in profitability occurred despite revenues declining from 14,144 million USD in 2018 to 13,209 million USD in 2019. The simultaneous increase in net income to 2,190 million USD and the rise in profit margins suggest significant improvements in operational efficiency or a reduction in non-operating expenses.
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Comparison to Competitors
Kinder Morgan Inc., net profit margin, long-term trends, comparison to competitors
| Kinder Morgan Inc. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | |
|---|---|---|---|---|
| Dec 31, 2019 | 16.58% | 2.09% | 22.07% | 5.61% |
| Dec 31, 2018 | 11.38% | 9.33% | 17.18% | 7.46% |
| Dec 31, 2017 | 1.34% | 6.83% | -2.94% | 8.31% |
| Dec 31, 2016 | 5.42% | -0.45% | -15.26% | 3.59% |
| Dec 31, 2015 | 1.76% | 3.53% | -14.98% | 6.22% |
| Dec 31, 2014 | 6.32% | 9.60% | 13.08% | 8.25% |
| Dec 31, 2013 | 8.48% | 9.73% | 16.83% | 7.74% |
| Dec 31, 2012 | 3.16% | 11.35% | 14.54% | 9.90% |
| Dec 31, 2011 | 7.19% | 11.01% | 5.08% | 8.79% |
| Dec 31, 2010 | -0.50% | 9.60% | 6.00% | 8.23% |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Kinder Morgan Inc., net profit margin, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Kinder Morgan Inc. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2019 | 16.58% | 5.71% |
| Dec 31, 2018 | 11.38% | 8.83% |
| Dec 31, 2017 | 1.34% | 7.00% |
| Dec 31, 2016 | 5.42% | 1.06% |
| Dec 31, 2015 | 1.76% | 3.89% |
| Dec 31, 2014 | 6.32% | 9.06% |
| Dec 31, 2013 | 8.48% | 9.08% |
| Dec 31, 2012 | 3.16% | 10.72% |
| Dec 31, 2011 | 7.19% | 8.41% |
| Dec 31, 2010 | -0.50% | 8.03% |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
Comparison to Industry (Energy)
Kinder Morgan Inc., net profit margin, long-term trends, comparison to industry (energy)
| Kinder Morgan Inc. | Energy | |
|---|---|---|
| Dec 31, 2019 | 16.58% | 3.11% |
| Dec 31, 2018 | 11.38% | 8.68% |
| Dec 31, 2017 | 1.34% | 6.15% |
| Dec 31, 2016 | 5.42% | 0.54% |
| Dec 31, 2015 | 1.76% | 4.04% |
| Dec 31, 2014 | 6.32% | 9.21% |
| Dec 31, 2013 | 8.48% | 9.44% |
| Dec 31, 2012 | 3.16% | 10.84% |
| Dec 31, 2011 | 7.19% | 8.58% |
| Dec 31, 2010 | -0.50% | 8.29% |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).