Huntington Ingalls Industries Inc (HII)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 90.62% | 89.96% | 90.03% | 89.67% | 89.61% |
| Operating profit margin | 4.64% | 6.82% | 5.29% | 5.39% | 8.54% |
| Pretax margin | 5.57% | 7.45% | 6.73% | 6.53% | 8.65% |
| Net profit margin | 4.77% | 5.95% | 5.42% | 5.71% | 7.44% |
Huntington Ingalls Industries Inc has demonstrated strong gross profit margins over the past five years, improving from 89.61% in 2020 to 90.62% in 2024. This indicates the company's ability to efficiently manage its production costs and generate profits from its core operations.
However, the company's operating profit margin has been somewhat volatile, decreasing from 8.54% in 2020 to 4.64% in 2024. This trend suggests that Huntington Ingalls Industries may be facing challenges in controlling its operating expenses and optimizing its operational efficiency.
Similarly, the pretax margin of the company has shown fluctuations, declining from 8.65% in 2020 to 5.57% in 2024. This indicates that Huntington Ingalls Industries may be experiencing changes in its pre-tax profitability performance, possibly impacted by factors such as changes in revenue, expenses, or tax obligations.
Moreover, the net profit margin of the company has also decreased over the five-year period, from 7.44% in 2020 to 4.77% in 2024. This decline suggests that Huntington Ingalls Industries' bottom-line profitability is facing pressure, possibly from various internal and external factors affecting its financial performance.
In summary, while Huntington Ingalls Industries Inc has maintained strong gross profit margins, the declining trends in operating profit margin, pretax margin, and net profit margin indicate potential challenges in managing operating expenses and sustaining overall profitability levels over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.41% | 6.96% | 5.20% | 4.83% | 9.80% |
| Return on assets (ROA) | 4.53% | 6.07% | 5.33% | 5.12% | 8.53% |
| Return on total capital | 9.49% | 15.03% | 13.69% | 11.64% | 25.76% |
| Return on equity (ROE) | 11.79% | 16.64% | 16.60% | 19.37% | 36.61% |
Huntington Ingalls Industries Inc's profitability ratios have shown some fluctuations over the past five years.
- Operating Return on Assets (Operating ROA): This ratio measures the company's operating income generated per dollar of assets. Huntington Ingalls Industries Inc's Operating ROA decreased from 9.80% in 2020 to 4.83% in 2021 but improved to 6.96% in 2023 before declining slightly to 5.20% in 2022 and 4.41% in 2024.
- Return on Assets (ROA): This ratio indicates the company's overall profitability by measuring how efficiently it generates profit from its total assets. Huntington Ingalls Industries Inc's ROA followed a similar trend, declining from 8.53% in 2020 to 5.12% in 2021, then improving to 6.07% in 2023, with a slight dip to 5.33% in 2022 and 4.53% in 2024.
- Return on Total Capital: This ratio evaluates the company's ability to generate returns on the total capital employed, including both equity and debt. Huntington Ingalls Industries Inc's Return on Total Capital decreased significantly from 25.76% in 2020 to 9.49% in 2024, with fluctuations in between, indicating a decrease in returns over the years.
- Return on Equity (ROE): This ratio showcases the return generated for shareholders' equity investment in the company. Huntington Ingalls Industries Inc's ROE declined from 36.61% in 2020 to 11.79% in 2024, with a notable decrease in 2021 followed by relatively stable performance in the subsequent years.
Overall, the profitability ratios of Huntington Ingalls Industries Inc have seen some variability, with a general trend of decline in recent years, suggesting potential challenges in generating profits relative to the company's assets, capital, and equity.