Hillenbrand Inc (HI)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.55% | 32.99% | 32.67% | 32.31% | 34.47% |
| Operating profit margin | 25.68% | 33.49% | 33.52% | 10.93% | 13.46% |
| Pretax margin | 23.80% | 12.65% | 14.66% | -1.00% | 9.51% |
| Net profit margin | 20.16% | 9.02% | 11.15% | -2.39% | 6.72% |
Hillenbrand Inc's profitability ratios provide insights into the company's ability to generate profits relative to its revenues and operating costs.
The gross profit margin has shown a slight improvement from 32.46% in 2022 to 33.55% in 2023. This indicates that the company is effectively managing its production costs and is able to retain a higher percentage of sales revenue after accounting for the cost of goods sold.
The operating profit margin, indicating the company's ability to generate profits from its core operations, decreased from 12.87% in 2022 to 10.42% in 2023. This suggests that the company's operating expenses relative to sales have increased, impacting its profitability.
The pretax margin, reflecting the company's profitability before accounting for taxes, also decreased from 10.68% in 2022 to 7.68% in 2023. This decline may indicate an increase in non-operating expenses or a decrease in non-operating income.
However, the net profit margin showed a substantial improvement from 7.10% in 2022 to 20.16% in 2023. This sharp increase suggests that the company's bottom-line profitability has improved significantly, possibly due to lower tax expenses or other non-operating items positively impacting net income.
Overall, while some profitability margins saw fluctuations, Hillenbrand Inc's net profit margin exhibited a notable improvement, signaling enhanced profitability in the most recent period. Nevertheless, further analysis of the factors contributing to these changes would be necessary to fully assess the company's profitability trends.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.08% | 20.05% | 18.72% | 6.90% | 10.92% |
| Return on assets (ROA) | 10.27% | 5.40% | 6.22% | -1.51% | 5.45% |
| Return on total capital | 20.72% | 15.50% | 16.63% | 2.03% | 14.51% |
| Return on equity (ROE) | 34.94% | 19.29% | 20.66% | -5.68% | 16.10% |
Hillenbrand Inc's profitability ratios show some fluctuations over the past five years. Starting with the operating return on assets (Operating ROA), there has been a decrease in the most recent year, from 9.79% in 2022 to 5.31% in 2023, indicating a decline in the company's ability to generate operating income from its assets.
The return on assets (ROA) also reflects a mixed performance, with a significant improvement from -1.51% in 2020 to 10.27% in 2023. This suggests that the company has been able to enhance its profitability relative to its total assets, but the negative ROA in 2020 raises concerns about its profitability during that year.
The return on total capital has also seen fluctuations, with the most recent year showing a decrease to 8.09% from 16.42% in 2022. This indicates that the company's ability to generate returns from its total capital has declined, possibly due to changes in the company's capital structure or operational efficiency.
The return on equity (ROE) has shown a substantial improvement, reaching 34.94% in 2023 from -5.68% in 2020. This highlights the company's ability to generate strong returns for its shareholders relative to their equity investments.
Overall, while there have been fluctuations in profitability ratios, the company has managed to improve its return on assets and return on equity, though there are areas that may need attention, such as the decline in operating return on assets and return on total capital in the most recent year.