Huntington Ingalls Industries Inc (HII)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 89.96% | 90.03% | 89.67% | 89.61% | 90.29% |
| Operating profit margin | 6.82% | 5.29% | 5.39% | 8.54% | 8.27% |
| Pretax margin | 7.45% | 6.73% | 6.53% | 8.65% | 7.68% |
| Net profit margin | 5.95% | 5.42% | 5.71% | 7.44% | 6.17% |
Huntington Ingalls Industries Inc's profitability ratios have shown some fluctuations over the past five years. The gross profit margin, a measure of a company's efficiency in generating profits from its revenue after accounting for the cost of goods sold, has ranged from 13.49% to 17.84%. In 2023, the gross profit margin improved to 14.37% compared to the previous year, indicating a stronger performance in managing direct production costs.
The operating profit margin, which reflects a company's ability to control its operating expenses relative to its revenue, has also varied, ranging from 4.83% to 8.35%. In 2023, the operating profit margin increased to 5.45%, signaling some improvement in the company's cost management strategies and operational efficiency.
The pretax margin, representing the company's profitability before accounting for taxes, experienced fluctuations between 6.53% and 8.65%. In 2023, the pretax margin increased to 7.45%, indicating that Huntington Ingalls Industries Inc was able to generate higher profits before tax compared to the previous year.
The net profit margin, which shows the percentage of revenue that translates into profit after all expenses are deducted, has ranged from 5.42% to 7.44%. In 2023, the net profit margin improved to 5.95%, suggesting that the company's bottom-line profitability increased, although it remained below the levels seen in 2020 and 2019.
Overall, Huntington Ingalls Industries Inc's profitability ratios have exhibited some variability over the years, with improvements in gross profit margin, operating profit margin, pretax margin, and net profit margin in 2023 compared to the previous year. Continued monitoring of these ratios will be important to assess the company's ongoing profitability and financial health.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.96% | 5.20% | 4.83% | 9.80% | 10.47% |
| Return on assets (ROA) | 6.07% | 5.33% | 5.12% | 8.53% | 7.81% |
| Return on total capital | 15.03% | 13.69% | 11.64% | 25.76% | 26.20% |
| Return on equity (ROE) | 16.64% | 16.60% | 19.37% | 36.61% | 34.57% |
Huntington Ingalls Industries Inc's profitability ratios show a mixed performance over the past five years.
The Operating return on assets (Operating ROA) has seen fluctuations, reaching its peak in 2020 at 9.39% before dropping to 5.56% in 2023. This metric indicates the company's efficiency in generating operating income relative to its total assets.
The overall Return on assets (ROA) has also varied, with a high of 8.53% in 2020 and a low of 5.12% in 2021. ROA measures the company's ability to generate profit from its assets, and Huntington Ingalls Industries Inc has shown some inconsistency in this aspect.
Return on total capital has shown a significant decrease from 22.25% in 2020 to 10.11% in 2023. This ratio reflects the company's ability to generate returns for both debt and equity holders relative to its total capital.
Return on equity (ROE) has fluctuated, with a high of 36.61% in 2020 and a low of 16.60% in 2022. ROE indicates the return generated on shareholders' equity, and Huntington Ingalls Industries Inc's performance in this area has been varied over the years.
In conclusion, the company's profitability ratios reflect fluctuations in performance, with some ratios showing strong performance in certain years while weaker performance in others. This indicates the importance of further analysis to understand the reasons behind these fluctuations and to assess the company's overall financial health.