Helen of Troy Ltd (HELE)
Profitability ratios
Return on sales
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 47.93% | 47.81% | 47.57% | 47.84% | 47.10% | 45.95% | 45.39% | 44.32% | 43.39% | 43.20% | 42.69% | 43.09% | 42.87% | 43.49% | 43.86% | 43.65% | 44.18% | 43.78% | 43.46% | 43.38% |
| Operating profit margin | 10.68% | 11.13% | 12.67% | 13.18% | 13.21% | 12.40% | 10.87% | 10.71% | 10.22% | 9.61% | 9.90% | 11.03% | 12.26% | 11.47% | 11.90% | 13.04% | 13.41% | 12.51% | 12.46% | 10.73% |
| Pretax margin | 4.81% | 8.27% | 9.80% | 10.30% | 10.42% | 9.70% | 8.15% | 8.26% | 8.26% | 8.23% | 9.01% | 10.39% | 11.69% | 10.90% | 11.34% | 12.53% | 12.84% | 11.90% | 11.80% | 10.00% |
| Net profit margin | 6.49% | 6.05% | 7.35% | 7.82% | 8.41% | 8.10% | 6.87% | 6.93% | 6.91% | 6.77% | 7.63% | 8.74% | 10.06% | 9.58% | 9.92% | 11.29% | 12.10% | 11.25% | 11.41% | 9.81% |
Helen of Troy Ltd's profitability ratios have shown fluctuation over the analyzed period.
- Gross profit margin has generally been within the range of 42% to 48%. It experienced an upward trend, reaching a high of 47.93% as of February 28, 2025. This indicates the company's ability to generate profits after accounting for the cost of goods sold.
- Operating profit margin, on the other hand, fluctuated between 9% and 13%, with some volatility evident. The margin peaked at 13.41% as of February 28, 2021, before declining and gradually recovering to 12.67% by August 31, 2024.
- Pretax margin exhibited a similar pattern, fluctuating between 4.81% and 12.84%. The margin reached a peak on February 28, 2021, before declining sharply to 4.81% by February 28, 2025. This suggests varying levels of profitability before accounting for taxes over the period.
- Net profit margin also varied significantly, ranging from 6.05% to 12.10%. The highest margin was observed on February 28, 2021, followed by a noticeable drop in subsequent periods, reaching a low of 6.05% by November 30, 2024. This indicates the company's efficiency in converting revenue into net income.
Overall, Helen of Troy Ltd's profitability ratios reflect fluctuations in profitability over the analyzed period, with varying levels of performance in generating profits at different stages.
Return on investment
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.51% | 7.16% | 8.49% | 9.09% | 9.33% | 8.40% | 7.53% | 7.61% | 7.27% | 6.66% | 6.86% | 7.69% | 9.65% | 9.92% | 10.72% | 12.32% | 12.44% | 11.00% | 10.71% | 9.52% |
| Return on assets (ROA) | 3.95% | 3.89% | 4.92% | 5.40% | 5.94% | 5.49% | 4.75% | 4.92% | 4.92% | 4.69% | 5.29% | 6.09% | 7.93% | 8.29% | 8.94% | 10.67% | 11.22% | 9.89% | 9.80% | 8.70% |
| Return on total capital | 8.52% | 13.39% | 13.98% | 15.09% | 14.79% | 13.96% | 14.79% | 14.42% | 14.23% | 14.31% | 15.83% | 17.21% | 19.92% | 17.52% | 19.57% | 24.00% | 22.68% | 23.59% | 20.18% | 17.27% |
| Return on equity (ROE) | 7.35% | 7.10% | 9.05% | 9.82% | 10.30% | 10.22% | 9.19% | 9.32% | 9.62% | 10.08% | 12.21% | 14.11% | 16.86% | 15.21% | 16.93% | 20.85% | 20.49% | 18.89% | 16.29% | 14.07% |
Based on the provided data, let's analyze the profitability ratios of Helen of Troy Ltd:
1. Operating Return on Assets (Operating ROA):
- Helen of Troy's Operating ROA has varied over the period, ranging from a high of 12.44% on February 28, 2021, to a low of 6.51% on February 28, 2025.
- The company's ability to generate profits from its operations relative to its assets peaked in early 2021 but has shown a slight decline in recent periods, with a slight recovery in profitability by the end of May 2024.
2. Return on Assets (ROA):
- The Return on Assets ratio reflects the company's overall profitability in relation to its total assets.
- Helen of Troy's ROA has also fluctuated, with the highest value at 11.22% on February 28, 2021, and the lowest at 3.89% on November 30, 2024.
- The company's ability to generate profits from its assets has shown a decreasing trend over the years, indicating a potential inefficiency in asset utilization.
3. Return on Total Capital:
- This ratio measures the return the company generates from all the capital invested in the business.
- Helen of Troy's Return on Total Capital has shown volatility, peaking at 24.00% on May 31, 2021, and hitting a low of 8.52% on February 28, 2025.
- The company's return on total capital has generally trended downwards since mid-2021, indicating potential challenges in optimizing total capital investments for profitability.
4. Return on Equity (ROE):
- ROE represents the return generated for each dollar of shareholders' equity.
- Helen of Troy's ROE reached its highest point at 20.85% on May 31, 2021 and its lowest at 7.10% on November 30, 2024, showing a declining trend.
- The decreasing ROE suggests that the company's profitability in relation to shareholders' equity has been weakening over the years, which could be a concern for investors.
In conclusion, while Helen of Troy Ltd has shown fluctuations in profitability ratios over the years, there are signs of decreasing profitability and efficiency in utilizing assets and capital. It would be important for the company to address these trends to sustain and improve its profitability in the future.