Clean Harbors Inc (CLH)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 16.71% | 18.07% | 16.07% | 16.02% | 14.71% |
| Operating profit margin | 11.35% | 12.28% | 9.15% | 8.01% | 6.73% |
| Pretax margin | 9.33% | 10.41% | 7.09% | 5.56% | 4.35% |
| Net profit margin | 7.00% | 7.97% | 5.34% | 4.30% | 2.87% |
Clean Harbors, Inc. has shown relatively stable gross profit margins over the past five years, ranging from 30.02% in 2019 to 32.01% in 2020, with a minor decrease to 30.74% in 2023. This indicates the company's ability to efficiently manage its cost of goods sold.
In terms of operating profit margins, Clean Harbors, Inc. has demonstrated a positive trend, improving from 6.72% in 2019 to 12.29% in 2022. Despite a slight decline to 11.32% in 2023, the overall trend shows the company's effective cost control measures and operational efficiency.
Similarly, the pretax margin has been on an upward trajectory, increasing from 4.34% in 2019 to 10.41% in 2022. Although there was a decrease to 9.30% in 2023, this metric reflects Clean Harbors, Inc.'s ability to generate profits before accounting for taxes.
Net profit margins have also improved consistently over the years, indicating the company's ability to manage its overall expenses efficiently and increase profitability. The net profit margin increased from 2.86% in 2019 to 7.97% in 2022, with a slight decrease to 6.99% in 2023.
Overall, Clean Harbors, Inc. has shown strengths in managing costs, improving operational efficiency, and increasing profitability over the past five years, as evidenced by the positive trends in its profitability ratios.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.60% | 10.36% | 6.15% | 6.08% | 5.58% |
| Return on assets (ROA) | 5.92% | 6.72% | 3.59% | 3.26% | 2.38% |
| Return on total capital | 13.49% | 14.64% | 8.63% | 8.69% | 8.13% |
| Return on equity (ROE) | 16.81% | 21.42% | 13.43% | 10.05% | 7.70% |
Clean Harbors, Inc. has shown consistent improvement in profitability ratios over the past five years. Starting with Operating Return on Assets (Operating ROA), the company's performance has been relatively stable, with the ratio ranging from 5.58% in 2019 to 10.36% in 2022. The latest figure for 2023 stands at 9.60%, indicating that the company is effectively generating operating income relative to its total assets.
Looking at Return on Assets (ROA), the company's profitability has also been on an upward trend, increasing from 2.38% in 2019 to 6.72% in 2022; however, there was a slight dip to 5.92% in 2023. This ratio signifies Clean Harbors' ability to generate profit from its assets, and the recent performance suggests a positive trend in asset utilization efficiency.
Moving on to Return on Total Capital, the company's profitability has consistently improved over the years, with the ratio climbing from 8.10% in 2019 to 14.60% in 2022. In 2023, Clean Harbors achieved a Return on Total Capital of 13.46%, indicating efficient capital utilization in generating returns for the company and its shareholders.
Lastly, Return on Equity (ROE) reflects the profitability of the company from the perspective of its shareholders. Clean Harbors' ROE has shown significant improvement, increasing from 7.70% in 2019 to 21.42% in 2022, before settling at 16.81% in 2023. This indicates that the company is efficiently using shareholder equity to generate profits and create value.
Overall, Clean Harbors, Inc. has demonstrated a positive trend in its profitability ratios, highlighting its ability to generate returns from its assets, capital, and equity over the years.