Haynes International Inc (HAYN)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 18.87% | 21.80% | 11.82% | 11.78% | 13.41% |
| Operating profit margin | 9.91% | 11.36% | -2.12% | 0.16% | 3.63% |
| Pretax margin | 8.92% | 11.81% | -2.91% | -1.98% | 2.74% |
| Net profit margin | 7.22% | 9.24% | -2.58% | -1.71% | 1.99% |
Haynes International Inc.'s profitability ratios indicate the company's ability to generate earnings relative to its revenue and operating costs. The gross profit margin, which reflects the proportion of revenue retained after accounting for the cost of goods sold, has fluctuated over the past five years, ranging from 11.77% to 21.68%. In 2023, the gross profit margin declined to 18.60%, possibly indicating increased production costs relative to revenue.
The operating profit margin, indicating the company's ability to generate profits from its core operations, also exhibited variability, with a sharp increase from -2.12% in 2021 to 11.30% in 2022, but a subsequent decrease to 9.76% in 2023. Despite the recent decline, the company's ability to generate profits from operations remains relatively stable.
The pretax and net profit margins, indicating profitability before and after accounting for taxes and other expenses, show a similar pattern of fluctuation. The pretax margin declined from -2.90% in 2021 to 8.80% in 2023, while the net profit margin followed a similar trend, reaching 7.11% in 2023. These improvements suggest that the company has effectively managed its expenses and taxes to enhance profitability.
Overall, while Haynes International Inc. has experienced fluctuating profitability ratios in recent years, the company has shown resilience in its ability to generate profits, manage costs, and improve its bottom line performance.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.16% | 8.77% | -1.31% | 0.11% | 2.98% |
| Return on assets (ROA) | 5.94% | 7.13% | -1.59% | -1.16% | 1.64% |
| Return on total capital | 10.83% | 13.35% | -2.50% | -2.05% | 4.85% |
| Return on equity (ROE) | 9.66% | 12.01% | -2.53% | -2.15% | 3.29% |
Haynes International Inc.'s profitability ratios show variable trends over the past five years. The operating return on assets (Operating ROA) has declined from 8.77% in 2022 to 8.16% in 2023. This may indicate a decrease in the company's ability to generate operating income from its assets. However, the return on assets (ROA) and return on total capital have also decreased from 7.13% to 5.94% and from 14.45% to 10.34%, respectively, suggesting a decline in overall profit generation and utilization of the company's total capital.
The return on equity (ROE) has followed a similar downward trend, dropping from 12.01% in 2022 to 9.66% in 2023. This indicates a reduction in the company's profitability in relation to the shareholders' equity.
Overall, the profitability ratios suggest a decrease in the company's efficiency in generating profits from its assets and capital over the past year. Further analysis of the company's financial and operational performance may be needed to understand the underlying factors contributing to these changes.