Revenue Analysis
Over the past three years, ED has seen fluctuations in revenue figures. The Total and Operating Revenue has shown a general uptrend from $2,944,000,000 in 2023-06-30 to $4,280,000,000 in 2024-03-31. Simultaneously, Gross Profit has surged from $1,483,000,000 to $2,388,000,000 in the same period, indicating improved margins and efficient management of revenue streams.
Cost Management
Cost of Revenue and Operating Expenses have demonstrated a climbing trend in alignment with the revenue increase. Specifically, the Cost of Revenue heightened from $1,461,000,000 in 2023-06-30 to $1,892,000,000 in 2024-03-31, reflecting the cost implications of increased sales volume. Moreover, Total Expenses incrementally rose from $2,673,000,000 to $3,239,000,000 across the reviewed period.
Profitability Analysis
ED’s profitability metrics such as EBITDA, Operating Income, and Pretax Income, have generally improved. EBITDA increased from $987,000,000 in 2023-06-30 to $1,732,000,000 in 2024-03-31. Similarly, Operating Income grew significantly from $271,000,000 to $1,041,000,000, which underscores operational efficiency and potentially effective cost controls. Correspondingly, Net Income also rose from $226,000,000 to $720,000,000, marking substantial profitability growth.
Cash Flow Indicators
Important indicators of cash flow, such as Reconciled Depreciation and Interest Expense have been stable. Reconciled Depreciation was consistently around $500,000,000 through the periods except a spike in 2024-03-31 at $539,000,000. Interest Expense witnessed a rising curve at $236,000,000 in 2023-06-30 to $289,000,000 in 2024-03-31, likely due to increased borrowing.
Taxation
The tax rate has seen variations, recording a lower rate of 0.12 in 2023-06-30 and higher at 0.20354 in 2024-03-31. Tax provisions followed an ascending path, crucially elevating from $29,000,000 to $184,000,000, signifying higher pre-tax earnings. Also, unusual items had significant tax impacts, especially in 2024 with a large negative tax effect, indicating substantial non-recurring costs or rebates.
Shareholder Metrics
Both Diluted and Basic EPS improved meaningfully from 0.65 in 2023-06-30 to 2.08 in 2024-03-31, which reflects the bolstering net income. The number of average shares (both diluted and basic) has shown slight increases, potentially due to financing activities or stock-based compensation plans.
Conclusion
Overall, ED’s financial health appears robust with increasing revenue, prudent cost management, strengthened profitability, stable cash flow provisions, and a favourable taxation stance. However, the management should continue to monitor cost surge and interest expenses to maintain profitability. Investing in growth sectors and enhancing operational efficiencies could be beneficial.