Hillenbrand Inc (HI)
Net profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 569,700 | 208,900 | 249,900 | -60,100 | 121,400 |
| Revenue | US$ in thousands | 2,826,000 | 2,315,300 | 2,241,400 | 2,517,000 | 1,807,300 |
| Net profit margin | 20.16% | 9.02% | 11.15% | -2.39% | 6.72% |
September 30, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $569,700K ÷ $2,826,000K
= 20.16%
The net profit margin is a crucial indicator of a company's profitability as it measures the percentage of each dollar of revenue that translates into profit after all expenses are deducted. Looking at Hillenbrand Inc's net profit margin over the past five years, we observe significant fluctuations, indicating changes in the company's ability to generate profit.
In 2019, the net profit margin stood at 6.72%, representing a reasonable profitability level. However, in 2020, the margin dipped to a negative 2.39%, indicating that the company's expenses exceeded its revenues, resulting in a loss. This negative margin may be a cause for concern, and it warrants further investigation into the factors that led to this decline in profitability.
The subsequent years, 2021 and 2022, reflected an improvement in the net profit margin, reaching 8.72% and 7.10% respectively. This upward trend indicates a recovery from the previous year's loss, suggesting that Hillenbrand Inc made operational and financial adjustments to enhance its profitability.
The most recent data for 2023 reveals a notable increase in the net profit margin to 20.16%, signifying a substantial improvement in the company's ability to convert its sales into profit. This surge in profitability demonstrates the effectiveness of the company's strategies in managing costs and increasing efficiency.
In conclusion, Hillenbrand Inc's net profit margin has exhibited considerable volatility over the past five years, including a temporary loss-making period. However, the company has displayed resilience and adaptability, as evidenced by the recovery and significant improvement in profitability in recent years. It is essential for investors and stakeholders to closely monitor future financial reports to assess whether the company can sustain this enhanced profitability and continue on a positive trajectory.
Peer comparison
Sep 30, 2023