Hims Hers Health Inc (HIMS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 79.45% | 81.13% | 82.19% | 82.41% | 81.99% | 81.16% | 80.25% | 79.07% | 77.57% | 76.16% | 74.62% | 74.48% | 75.22% | 76.23% | 76.96% | 75.48% | 73.58% | 58.54% | 50.24% | 36.31% |
| Operating profit margin | 4.19% | 3.45% | 1.12% | -0.86% | -3.38% | -5.13% | -7.33% | -10.23% | -13.04% | -17.70% | -23.10% | -26.04% | -42.31% | -42.91% | -37.67% | -33.53% | -10.18% | -8.15% | -8.70% | -12.64% |
| Pretax margin | 4.86% | 4.16% | 1.98% | 0.05% | -2.47% | -4.39% | -6.58% | -9.61% | -12.47% | -19.34% | -23.06% | -23.57% | -40.75% | -37.07% | -36.51% | -37.02% | -12.09% | -19.02% | -21.24% | -33.43% |
| Net profit margin | 8.54% | 8.15% | 1.70% | -0.25% | -2.70% | -4.51% | -6.61% | -9.66% | -12.47% | -19.34% | -22.22% | -22.60% | -39.60% | -35.74% | -36.60% | -37.12% | -12.18% | -9.21% | -6.45% | -8.91% |
Hims Hers Health Inc has shown a positive trend in its profitability ratios over the analyzed periods.
1. Gross profit margin has consistently improved from 36.31% in March 2020 to 79.45% in December 2024, indicating efficient cost management and strong pricing power.
2. Operating profit margin, though initially negative, has gradually increased from -42.91% in September 2021 to 4.19% in December 2024, reflecting better control over operating expenses and improved operational efficiency.
3. Pretax margin has shown a similar pattern, moving from -40.75% in December 2021 to 4.86% in December 2024, suggesting effective management of pre-tax income and expenses.
4. Net profit margin has improved significantly from -39.60% in December 2021 to 8.54% in December 2024, indicating enhanced profitability after accounting for all expenses, including taxes.
Overall, the company has demonstrated a commendable improvement in its profitability metrics, reflecting stronger financial performance and potentially higher shareholder value over the analyzed periods.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.75% | 7.12% | 2.49% | -1.85% | -6.68% | -9.82% | -13.36% | -16.75% | -18.75% | -20.55% | -22.72% | -21.87% | -27.35% | -23.35% | -21.21% | -16.58% | -12.76% | -5.23% | -3.83% | -3.36% |
| Return on assets (ROA) | 17.81% | 16.81% | 3.77% | -0.52% | -5.34% | -8.63% | -12.05% | -15.82% | -17.93% | -22.45% | -21.85% | -18.98% | -25.60% | -19.46% | -20.61% | -18.35% | -15.26% | -5.91% | -2.84% | -2.37% |
| Return on total capital | 12.99% | 9.75% | 3.31% | -2.41% | -8.56% | -12.37% | -16.27% | -20.16% | -22.04% | -28.41% | -27.42% | -23.31% | -33.11% | -23.86% | -24.39% | -21.64% | — | — | — | — |
| Return on equity (ROE) | 26.44% | 23.01% | 5.00% | -0.68% | -6.84% | -10.87% | -14.68% | -19.03% | -21.08% | -27.64% | -26.02% | -22.13% | -32.17% | -23.01% | -24.45% | -21.71% | — | — | — | — |
Based on the provided data for Hims Hers Health Inc, the profitability ratios indicate a mixed performance over the quarters analyzed:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA was negative throughout most of the periods, indicating that the company was not generating operating profits efficiently in relation to its assets. There was a significant improvement in profitability from December 2023 onwards with positive percentage values in June and September 2024.
2. Return on Assets (ROA):
- The ROA was also negative for the majority of the quarters, showing that the company was not effectively utilizing its assets to generate profits. Similarly, there was a notable improvement in profitability from September 2023 onwards, with positive values in June and September 2024.
3. Return on Total Capital:
- The Return on Total Capital was negative in most quarters, implying that the company was not generating sufficient returns on the total capital employed. However, there was a gradual improvement in profitability from March 2024 onwards, with positive values recorded in June and September 2024.
4. Return on Equity (ROE):
- The ROE mirrored the trends observed in the other profitability ratios, with negative values in the initial periods. There was a significant improvement in profitability starting from June 2024, with positive returns exceeding 20% by December 2024.
Overall, Hims Hers Health Inc showed a pattern of initially struggling with profitability, but gradually moving towards positive returns as evidenced by the improving figures in the latter quarters. Investors and stakeholders may find the positive momentum in profitability ratios from 2024 encouraging as it suggests the company's efforts to enhance profitability are beginning to bear fruit.