Hasbro Inc (HAS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 64.61% | 57.34% | 58.94% | 60.32% | 58.12% |
| Operating profit margin | 16.68% | -30.76% | 6.96% | 11.89% | 9.18% |
| Pretax margin | 12.02% | -34.16% | 4.46% | 9.06% | 5.89% |
| Net profit margin | 9.32% | -29.77% | 3.47% | 6.68% | 4.07% |
Hasbro Inc's profitability ratios have shown some fluctuations over the past five years. The gross profit margin has generally been favorable, with an increase from 58.12% in 2020 to 60.32% in 2021, before slightly declining to 57.34% in 2023, and then experiencing a significant improvement to 64.61% in 2024.
The operating profit margin followed a similar pattern, starting at 9.18% in 2020, increasing to 11.89% in 2021, dropping to 6.96% in 2022, experiencing a sharp decline to -30.76% in 2023, and eventually recovering to 16.68% in 2024.
The pretax margin also exhibited variability, rising from 5.89% in 2020 to 9.06% in 2021, declining to 4.46% in 2022, plummeting to -34.16% in 2023, and finally rebounding to 12.02% in 2024.
The net profit margin, which indicates the company's bottom-line profitability after all expenses have been deducted, saw an increase from 4.07% in 2020 to 6.68% in 2021, followed by a decrease to 3.47% in 2022, a significant drop to -29.77% in 2023, and a recovery to 9.32% in 2024.
Overall, while Hasbro Inc has shown strong gross profit margins and some positive trends in net profit margins, there have been fluctuations in operating and pretax margins, with a particularly challenging year in 2023. Monitoring these ratios closely is essential for understanding the company's profitability performance and financial health.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.88% | -23.53% | 4.39% | 7.60% | 4.64% |
| Return on assets (ROA) | 6.08% | -22.77% | 2.19% | 4.27% | 2.06% |
| Return on total capital | 56.39% | -143.40% | 15.11% | 24.86% | 17.82% |
| Return on equity (ROE) | 32.54% | -140.25% | 7.11% | 14.00% | 7.58% |
Based on the provided data for Hasbro Inc, let's analyze the profitability ratios:
1. Operating Return on Assets (Operating ROA):
- Hasbro Inc's Operating ROA has shown variability over the years. It increased from 4.64% in 2020 to peak at 10.88% in 2024. The dip in 2023 to -23.53% indicates a significant decrease in operating profitability compared to the other years.
2. Return on Assets (ROA):
- ROA also experienced fluctuations, with a similar trend to Operating ROA. It rose from 2.06% in 2020 to reach 6.08% in 2024. However, the negative ROA of -22.77% in 2023 reflects a challenging year for the company in terms of generating profits from its assets.
3. Return on Total Capital:
- The Return on Total Capital for Hasbro Inc followed an increasing trend from 17.82% in 2020 to reach 56.39% in 2024. The significant negative return of -143.40% in 2023 is a cause for concern, indicating a situation where the company's capital is not effectively utilized to generate returns.
4. Return on Equity (ROE):
- ROE also displayed fluctuations over the years, reflecting the company's ability to generate profits for its shareholders. It climbed from 7.58% in 2020 to a high of 32.54% in 2024. However, the negative ROE of -140.25% in 2023 highlights a year of substantial loss compared to the equity invested.
In summary, Hasbro Inc's profitability ratios have shown mixed performance over the years, with fluctuations in profitability and returns. The negative values in certain years raise concerns about the company's operational and financial efficiency, highlighting potential areas for improvement in managing assets, capital, and equity to enhance overall profitability.