Healthcare Services Group Inc (HCSG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.29% | 12.85% | 11.47% | 13.82% | 15.22% |
| Operating profit margin | 3.10% | 3.73% | 3.17% | 1.89% | 5.17% |
| Pretax margin | 3.09% | 3.17% | 2.67% | 3.77% | 7.34% |
| Net profit margin | 2.30% | 2.30% | 2.03% | 2.96% | 5.61% |
The profitability ratios of Healthcare Services Group Inc show a fluctuating trend over the past five years. The gross profit margin decreased from 15.22% in December 2020 to 13.82% in December 2021, further dropping to 11.47% in December 2022, before rebounding to 12.85% in December 2023 and 13.29% in December 2024.
Similarly, the operating profit margin showed a decline from 5.17% in December 2020 to 1.89% in December 2021, followed by a slight improvement to 3.17% in December 2022, 3.73% in December 2023, and then a decrease to 3.10% in December 2024.
The pretax margin also exhibited a downward trend over the years, starting at 7.34% in December 2020 and gradually decreasing to 3.09% in December 2024, with a minor increase in 2023.
The net profit margin followed a similar pattern, declining from 5.61% in December 2020 to 2.96% in December 2021, and then hovering around 2.03% in December 2022 and 2.30% in both December 2023 and December 2024.
Overall, the profitability of Healthcare Services Group Inc has faced challenges in maintaining margins over the past five years, with fluctuations in gross, operating, pretax, and net profit margins. This suggests potential issues with cost management, revenue generation, or both within the company's operations that require further investigation and potential strategic interventions.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.64% | 7.89% | 7.45% | 3.99% | 11.59% |
| Return on assets (ROA) | 4.92% | 4.85% | 4.77% | 6.24% | 12.57% |
| Return on total capital | 11.88% | 13.33% | 11.16% | 13.96% | 27.17% |
| Return on equity (ROE) | 7.90% | 8.41% | 8.04% | 10.72% | 20.54% |
Healthcare Services Group Inc's profitability ratios depict a trend of fluctuation over the years. Starting with Operating return on assets (Operating ROA), the company saw a decline from 11.59% in 2020 to 3.99% in 2021, followed by an improvement to 7.45% in 2022, 7.89% in 2023, and then a slight drop to 6.64% in 2024.
Looking at Return on assets (ROA), the trend follows a similar pattern, starting at 12.57% in 2020, dropping to 6.24% in 2021, and further declining to 4.77% in 2022. There was a minor increase in 2023 to 4.85%, followed by a slight rise to 4.92% in 2024.
Return on total capital saw a substantial decrease from 27.17% in 2020 to 13.96% in 2021, before continuing to decline to 11.16% in 2022. There was an improvement in 2023 to 13.33%, but it dropped again to 11.88% in 2024.
Lastly, Return on equity (ROE) trended downwards from 20.54% in 2020 to 10.72% in 2021, and then further to 8.04% in 2022. The ROE remained relatively stable in 2023 and 2024, registering at 8.41% and 7.90%, respectively.
Overall, these ratios indicate varying levels of profitability for Healthcare Services Group Inc over the years, pointing to the company's challenges and successes in generating returns for its shareholders and efficiently utilizing its assets and capital.