Duke Energy Industry Comparison Paper

736 Words3 Pages

By researching I discovered that Duke Energy was the largest power corporation, but Engie and National Grid are not far behind. However, these two corporations are located in other countries, so I decided to do an overall industry comparison using S&P. By looking at the ratios found in Appendix A.2 and A.3, it is noted that the industries are very similar, but Duke Energy is right below the industry average. Although Duke is slightly below the industry this could be due to expansion and investment. Duke is growing and is the top electric utility corporation in America. Duke has a higher operating margin meaning it is bringing in more money for every dollar made. This is very important and one of the most valuable ratios. Duke being a little …show more content…

This is why it is also important to look at the company year to year to see how it is doing on its own scale. Duke Energy appears to be doing better each year for the most part, but it is important to analyze specific ratios and data. This is where a trend analysis comes into part because the trend analysis shows a comparison overtime graphically. By looking at appendix A.5, A.6, and A.7 it is noted that Duke Energy is appearing to do better year to year. However, in 2014 Duke had some of its lowest values that it has since picked up from. The problem in 2014 was mainly due to a coal ash spill that Duke Energy agreed to pay for costing over $6 million. (New York Times) However, with Duke being the largest corporation it has since been able to recover and is continuing to grow. By looking at the trend analysis in A.6 and A.7 it is noted that the ROA is growing fast, but the total revenue is growing very slowly compared to the prior year. Clearly, Duke Energy is a going concern as was able to survive a disaster that could have destroyed a company. The company is doing well and growing, but it might not be the best time to invest currently after seeing the ratios and growth from year to year. With the ratios not being astounding Duke Energy will probably not have much gain. Furthermore, the year to year analysis shows that the company is peaking now, so stock prices are higher and unlikely to increase by much. The best time to buy would have been in