Helen of Troy Ltd (HELE)
Profitability ratios
Return on sales
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 47.93% | 47.31% | 43.39% | 42.87% | 44.18% |
| Operating profit margin | 7.48% | 13.00% | 10.22% | 12.26% | 13.41% |
| Pretax margin | 4.81% | 10.43% | 8.26% | 11.69% | 12.84% |
| Net profit margin | 6.49% | 8.41% | 6.91% | 10.06% | 12.10% |
Helen of Troy Ltd's gross profit margin has shown a slight fluctuation over the past five years, ranging from a low of 42.87% in February 2022 to a high of 47.93% in February 2025. This indicates the company's ability to generate profit after deducting the cost of goods sold, with a positive trend towards higher profitability in recent years.
In terms of operating profit margin, there has been a more significant variation in performance, with the margin decreasing from 13.41% in February 2021 to 7.48% in February 2025. This suggests challenges in controlling operating expenses relative to revenue, impacting overall profitability.
The pretax margin for Helen of Troy Ltd has also shown a declining trend, dropping from 12.84% in February 2021 to 4.81% in February 2025. This indicates that the company's pre-tax profitability has decreased over the years, possibly due to a combination of higher expenses or lower revenue.
Looking at the net profit margin, which reflects the company's bottom-line profitability, there has been a general decrease from 12.10% in February 2021 to 6.49% in February 2025. This downward trend indicates a decline in the company's ability to generate net income relative to its total revenue over the years.
In conclusion, Helen of Troy Ltd has experienced varying levels of profitability across different margin metrics over the past five years, with the gross profit margin showing a more positive trend compared to the operating, pretax, and net profit margins. Further analysis of the underlying factors contributing to these fluctuations would be necessary to determine the company's overall financial health and performance.
Return on investment
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.56% | 9.18% | 7.27% | 9.65% | 12.44% |
| Return on assets (ROA) | 3.95% | 5.94% | 4.92% | 7.93% | 11.22% |
| Return on total capital | 8.53% | 16.01% | 14.23% | 20.19% | 22.40% |
| Return on equity (ROE) | 7.35% | 10.30% | 9.62% | 16.86% | 20.49% |
Based on the provided data, Helen of Troy Ltd's profitability ratios have shown a declining trend over the years.
1. Operating Return on Assets (Operating ROA):
- In February 2021, the Operating ROA was 12.44%, indicating that the company generated 12.44 cents of operating profits for every dollar of assets.
- By February 2025, the Operating ROA had decreased to 4.56%, showing a significant decline in operational efficiency.
2. Return on Assets (ROA):
- The ROA in February 2021 was 11.22%, which decreased to 3.95% by February 2025.
- This ratio demonstrates the company's ability to generate profits from its total assets, with the decreasing trend indicating a decline in asset utilization or overall profitability.
3. Return on Total Capital:
- The Return on Total Capital in February 2021 was 22.40% but dropped to 8.53% by February 2025.
- This ratio measures the company's ability to generate returns for all capital providers, including both debt and equity holders. The decreasing trend suggests a potential decline in overall capital efficiency.
4. Return on Equity (ROE):
- The ROE in February 2021 was 20.49% and decreased to 7.35% by February 2025.
- ROE reflects the return generated for the company's shareholders, with a decreasing trend indicating lower profitability relative to shareholders' equity.
Overall, the declining profitability ratios suggest that Helen of Troy Ltd may be facing challenges in effectively utilizing its assets and capital to generate returns for its stakeholders. Management should carefully assess and address the factors contributing to this downward trend to improve the company's profitability in the future.