Harley-Davidson Inc (HOG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.88% | 30.61% | 40.86% | 32.08% | 25.26% |
| Operating profit margin | 8.03% | 13.35% | 15.80% | 15.43% | 1.53% |
| Pretax margin | 9.97% | 14.85% | 16.18% | 15.35% | -0.39% |
| Net profit margin | 8.78% | 12.11% | 12.88% | 12.18% | 0.03% |
Harley-Davidson Inc's profitability has shown fluctuations in recent years based on the provided data.
The Gross Profit Margin has varied significantly, starting at 25.26% in December 2020, reaching a peak of 40.86% in December 2022, then dropping to 30.61% in December 2023, and finally rising to 34.88% in December 2024. This indicates the percentage of revenue retained after accounting for the cost of goods sold, showing an upward trend overall.
The Operating Profit Margin started low at 1.53% in December 2020, then significantly improved to 15.43% in December 2021, maintaining a similar level in December 2022 at 15.80%. However, it decreased to 13.35% in December 2023 and further dropped to 8.03% in December 2024. This ratio reflects the efficiency of the company's operations in generating profit before interest and taxes.
The Pretax Margin depicts the company's profitability before taxes. It started negative at -0.39% in December 2020, then rose notably to 15.35% in December 2021, peaked at 16.18% in December 2022, but gradually declined to 9.97% in December 2024. This ratio indicates the proportion of revenue that translates into profit before taxes.
The Net Profit Margin, which represents the company's net profit as a percentage of revenue, began at a low of 0.03% in December 2020, then showed a substantial improvement to 12.18% in December 2021 and 12.88% in December 2022. Nevertheless, it slightly decreased to 12.11% in December 2023 and further dropped to 8.78% in December 2024. This ratio reveals the company's overall profitability after all expenses have been deducted.
In summary, Harley-Davidson Inc experienced fluctuations in profitability ratios over the years, with varying trends in different margins. It is crucial for investors and stakeholders to monitor these ratios to assess the company's performance and financial health accurately.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.51% | 6.42% | 7.91% | 7.45% | 0.52% |
| Return on assets (ROA) | 3.83% | 5.82% | 6.45% | 5.88% | 0.01% |
| Return on total capital | 70.84% | 27.59% | 32.85% | 32.68% | 7.98% |
| Return on equity (ROE) | 58.88% | 21.72% | 25.51% | 25.46% | 0.08% |
Based on the provided data, Harley-Davidson Inc's profitability ratios show varying trends over the five-year period from December 31, 2020, to December 31, 2024.
1. Operating return on assets (Operating ROA) increased significantly from 0.52% in 2020 to 7.91% in 2022, before experiencing a slight decrease to 6.42% in 2023 and further dropping to 3.51% in 2024. This indicates the company's ability to generate operating profits relative to its total assets, with a notable improvement in 2022.
2. Return on assets (ROA) also demonstrated an upward trend, rising from 0.01% in 2020 to 6.45% in 2022. However, there was a slight decline in 2023 and 2024 to 5.82% and 3.83%, respectively. ROA reflects the company's overall profitability in relation to its total assets.
3. Return on total capital exhibited a substantial increase from 7.98% in 2020 to 70.84% in 2024. This indicates how efficiently the company is generating profit from its total capital, showing significant growth and improved performance over the years.
4. Return on equity (ROE) also displayed a positive trend, climbing from 0.08% in 2020 to 58.88% in 2024. ROE measures the return earned on the shareholder's equity investment, demonstrating the company's ability to generate profits for its shareholders, with a remarkable increase in profitability over the period.
Overall, Harley-Davidson Inc's profitability ratios depict fluctuations in performance, with notable improvements up to 2022 followed by a slight decline in 2023 and 2024. The company has shown efficiency in utilizing its assets and capital to generate profits, ultimately benefiting its shareholders through increased returns on equity.