Hayward Holdings Inc (HAYW)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Gross profit margin | 51.96% | 47.51% | 49.04% |
| Operating profit margin | 19.09% | 22.73% | 23.78% |
| Pretax margin | 11.01% | 18.64% | 19.45% |
| Net profit margin | 8.79% | 14.27% | 15.23% |
Hayward Holdings Inc's profitability ratios showed a mixed performance over the past three years. The gross profit margin increased from 45.43% in 2022 to 48.06% in 2023, indicating the company was able to improve its efficiency in generating profit from its sales. However, the operating profit margin declined from 22.35% in 2022 to 18.99% in 2023, suggesting that the company's operating expenses may have increased relative to its net sales.
The pretax margin also decreased from 17.82% in 2022 to 10.19% in 2023, indicating that the company's profitability before accounting for taxes diminished over the period. Lastly, the net profit margin showed a fluctuating trend, dropping from 13.65% in 2022 to 8.13% in 2023, which could be a result of various factors including changes in operating expenses, interest expenses, or other income.
Overall, despite the improvement in the gross profit margin, the declining trend in operating profit margin, pretax margin, and net profit margin raise concerns about Hayward Holdings Inc's overall profitability and efficiency in managing its costs and expenses in the most recent fiscal year. Further analysis of the company's cost structure and revenue streams may be necessary to address these changes in profitability ratios.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.95% | 9.93% | 10.68% |
| Return on assets (ROA) | 2.74% | 6.24% | 6.84% |
| Return on total capital | 3.90% | 10.03% | 11.00% |
| Return on equity (ROE) | 6.15% | 14.66% | 14.88% |
Hayward Holdings Inc's profitability ratios reflect changes in its financial performance over the past three years. The trend analysis of the profitability ratios indicates a mixed performance for the company.
- Operating return on assets (Operating ROA) has shown a declining trend from 11.18% in 2021 to 6.40% in 2023, indicating that the company's operating efficiency in generating profits from its total assets has decreased over the years.
- Return on assets (ROA) has been volatile, with a significant drop from 6.24% in 2022 to 2.74% in 2023, indicating a decrease in the company's ability to generate profits from its assets.
- Return on total capital has also decreased over the years, from 14.14% in 2021 to 7.83% in 2023, indicating a decline in the company's overall profitability in relation to its total capital employed.
- Return on equity (ROE) has shown fluctuations, with a sharp decrease from 14.66% in 2022 to 6.15% in 2023, indicating a decline in the company's ability to generate profits for its shareholders.
Overall, the decreasing trend in the profitability ratios of Hayward Holdings Inc suggests challenges in maintaining and improving its financial performance, which may require further analysis and strategic actions to address underlying issues impacting profitability.