Healthcare Services Group Inc (HCSG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 1.87% | 2.95% | 3.01% | 6.42% | 3.83% |
| Operating profit margin | -10.17% | -7.63% | -8.44% | -2.78% | -5.95% |
| Pretax margin | 3.19% | 2.67% | 3.77% | 7.34% | 4.63% |
| Net profit margin | 2.31% | 2.03% | 2.79% | 5.61% | 3.51% |
Healthcare Services Group, Inc. has shown varying levels of profitability over the past five years, as evidenced by its profitability ratios. The gross profit margin, which indicates the percentage of revenue retained after accounting for the cost of goods sold, has fluctuated between 11.47% and 15.22%. It experienced a slight increase in 2023 compared to the previous year.
The operating profit margin, reflecting the company's ability to generate profit from its core operations, has been relatively stable, ranging from 2.87% to 6.66%. There was a slight decrease in the operating profit margin in 2023 compared to the prior year.
The pretax margin, representing the percentage of each dollar of revenue that translates into profit before taxes, has shown variability, with values between 2.67% and 7.34%. The pretax margin increased in 2023 compared to 2022, indicating improved profitability before tax expenses.
The net profit margin, which reveals how much profit the company generates from every dollar of revenue after all expenses, has also demonstrated fluctuations from 2.05% to 5.61%. In 2023, the net profit margin increased compared to the previous year, suggesting better bottom-line performance.
In conclusion, Healthcare Services Group, Inc. has displayed varying levels of profitability over the past five years, with improvements in certain profitability ratios in 2023 compared to the prior year. Continued monitoring of these ratios will be essential to assess the company's ongoing financial health and performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -21.42% | -17.91% | -17.82% | -6.23% | -15.14% |
| Return on assets (ROA) | 4.85% | 4.75% | 5.90% | 12.57% | 8.94% |
| Return on total capital | -37.08% | -30.86% | -30.61% | -10.17% | 19.24% |
| Return on equity (ROE) | 8.41% | 8.19% | 10.13% | 20.54% | 14.03% |
Healthcare Services Group, Inc.'s profitability ratios have shown varying trends over the past five years.
1. Operating return on assets (Operating ROA) has decreased from 14.93% in 2020 to 6.07% in 2023. This indicates that the company's operating income generated from its assets has declined.
2. Return on assets (ROA) has fluctuated over the years, with a peak of 12.57% in 2020 and a low of 4.82% in 2022. The ROA was 4.85% in 2023, suggesting a moderate profitability level relative to its total assets.
3. Return on total capital has also shown a downward trend, decreasing from 24.39% in 2020 to 9.96% in 2023. This ratio reflects how efficiently the company is generating returns from all sources of capital invested in the business.
4. Return on equity (ROE) has followed a similar pattern, declining from 20.54% in 2020 to 8.41% in 2023. ROE measures the return generated for the shareholders based on the equity invested in the company.
Overall, the declining trends in profitability ratios indicate that Healthcare Services Group, Inc. may be facing challenges in maintaining profitability and efficiency in utilizing its assets and capital. It may be important for the company to assess its operational strategies and financial performance to improve these metrics in the future.