Hims Hers Health Inc (HIMS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 79.45% | 81.99% | 77.57% | 75.22% | 73.58% |
| Operating profit margin | 4.19% | -3.38% | -13.04% | -42.31% | -10.18% |
| Pretax margin | 4.86% | -2.47% | -12.47% | -40.75% | -12.09% |
| Net profit margin | 8.54% | -2.70% | -12.46% | -39.60% | -12.18% |
Hims Hers Health Inc has shown an improving trend in its gross profit margin over the years, starting at 73.58% in December 31, 2020, and reaching 79.45% by December 31, 2024. This indicates that the company has been able to effectively manage its production costs and generate higher profits from its sales.
However, the operating profit margin of the company tells a different story, as it started in the negative territory at -10.18% in December 31, 2020, and continued to be negative until December 31, 2024, where it improved to 4.19%. This suggests that the company has faced challenges in controlling its operating expenses and improving operational efficiency during the initial years, but has made progress in turning a profit from its core business activities in the most recent period.
Similarly, the pretax margin and net profit margin of Hims Hers Health Inc have also shown a pattern of improvement over the years, with both ratios starting in negative percentages in 2020 and gradually turning positive by December 31, 2024. The pretax margin improved from -12.09% in 2020 to 4.86% in 2024, while the net profit margin increased from -12.18% to 8.54% during the same period. This indicates that the company's overall profitability has strengthened over time, reflecting better cost management and revenue generation.
In conclusion, Hims Hers Health Inc has demonstrated a positive trend in its profitability ratios, with improvements in gross profit margin, operating profit margin, pretax margin, and net profit margin over the years. The company's efforts to control costs, increase efficiency, and drive revenue growth have led to a notable enhancement in its overall profitability performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.75% | -6.68% | -18.75% | -27.35% | -12.76% |
| Return on assets (ROA) | 17.81% | -5.34% | -17.93% | -25.60% | -15.26% |
| Return on total capital | 12.99% | -8.56% | -22.04% | -33.11% | — |
| Return on equity (ROE) | 26.44% | -6.84% | -21.07% | -32.17% | — |
Based on the provided data, Hims Hers Health Inc's profitability ratios have shown fluctuations over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA was negative in all years, ranging from -27.35% to 8.75%. This suggests that the company's core operations have not been very effective in generating profit.
2. Return on Assets (ROA):
- The ROA also displayed a negative trend initially but turned positive in 2024 at 17.81%. This indicates that the company's overall asset management and profitability improved significantly in that year.
3. Return on Total Capital:
- There is missing data for the Return on Total Capital in 2020. The ratios for the subsequent years ranged from -33.11% to 12.99%, showing mixed performance in generating returns on total capital employed.
4. Return on Equity (ROE):
- The ROE was negative between 2020 and 2023, indicating that shareholders' equity was not efficiently utilized to generate profits. However, in 2024, the ROE turned positive to 26.44%, reflecting a notable improvement in generating returns for equity holders.
In summary, while Hims Hers Health Inc faced challenges in profitability in earlier years, there was a significant improvement in 2024, particularly in terms of ROA and ROE. However, the company still needs to focus on enhancing its operating efficiency and capital utilization to sustain and further improve its profitability ratios in the future.