Helen of Troy Ltd (HELE)
Profitability ratios
Return on sales
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 48.61% | 44.23% | 43.07% | 44.45% | 43.34% |
| Operating profit margin | 13.35% | 10.42% | 12.31% | 13.49% | 10.52% |
| Pretax margin | 10.71% | 8.42% | 11.75% | 12.92% | 9.79% |
| Net profit margin | 8.64% | 7.05% | 10.11% | 12.17% | 8.99% |
Helen of Troy Ltd's profitability ratios have shown some fluctuation over the past five fiscal years. The company's gross profit margin has generally improved, reaching 48.61% in 2024 compared to 43.34% in 2020. This indicates that the company is effectively managing its production costs and generating higher profits from sales.
The operating profit margin has also shown a positive trend, increasing from 10.52% in 2020 to 13.35% in 2024. This suggests that the company has been able to control its operating expenses and improve its operational efficiency.
However, the pretax margin has been more volatile, with fluctuations between 8.42% in 2023 and 12.92% in 2021. This ratio measures the company's profitability before accounting for taxes and indicates the overall efficiency of its operations in generating profits.
Finally, the net profit margin, which reflects the company's bottom line profitability after all expenses have been deducted, has fluctuated as well. It ranged from 7.05% in 2023 to 12.17% in 2021, with a current value of 8.64% in 2024.
Overall, while Helen of Troy Ltd has shown improvements in its gross profit margin and operating profit margin, the company has experienced some variations in its pretax and net profit margins. It will be important for the company to maintain a focus on cost control and operational efficiency to sustain and improve its profitability ratios in the future.
Return on investment
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.18% | 7.27% | 9.65% | 12.44% | 9.36% |
| Return on assets (ROA) | 5.94% | 4.92% | 7.93% | 11.22% | 8.00% |
| Return on total capital | 11.41% | 8.77% | 12.76% | 17.84% | 11.92% |
| Return on equity (ROE) | 10.30% | 9.62% | 16.86% | 20.49% | 13.11% |
Helen of Troy Ltd's profitability ratios have shown some fluctuations over the past five years.
- The Operating return on assets (Operating ROA) has ranged from 7.27% to 12.44% over the period. This ratio measures the company's operating income generated per dollar of assets. The increasing trend from 2021 to 2024 indicates that the company has been able to generate more operating income as a percentage of assets.
- The Return on assets (ROA) has varied from 4.92% to 11.22% during the same period. This ratio indicates the overall profitability of the company in generating earnings from its assets. The decrease in ROA from 2021 to 2023 followed by an increase in 2024 suggests that the efficiency in generating earnings from assets improved in the latest year.
- The Return on total capital has fluctuated between 8.77% and 17.84% over the five years. This ratio evaluates the company's ability to generate returns from all capital invested, including debt and equity. The increasing trend from 2021 to 2024 implies that the company has been more efficient in utilizing its total capital to generate returns.
- The Return on equity (ROE) has shown variability from 9.62% to 20.49% over the period. ROE measures the return generated on shareholders' equity. The downward trend from 2022 to 2023 followed by an increase in 2024 suggests that the company's ability to generate profit from shareholders' equity has improved recently.
In summary, Helen of Troy Ltd’s profitability ratios have shown some fluctuations over the years, with improvements in certain ratios indicating an enhanced efficiency in generating income from assets and capital.