Harley-Davidson Inc (HOG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.23% | 18.31% | 15.43% | 0.24% | 10.36% |
| Operating profit margin | 13.35% | 15.80% | 15.43% | 0.24% | 10.36% |
| Pretax margin | 15.05% | 16.22% | 15.35% | -0.39% | 10.40% |
| Net profit margin | 12.11% | 12.88% | 12.18% | 0.03% | 7.90% |
Harley-Davidson, Inc.'s profitability ratios show fluctuations over the past five years.
1. Gross Profit Margin:
The gross profit margin has ranged from 35.44% in 2020 to 39.18% in 2023. This indicates that the company is effectively managing its manufacturing and production costs to generate profit from its revenue.
2. Operating Profit Margin:
The operating profit margin has fluctuated significantly, from 3.45% in 2020 to 15.79% in 2022. This implies that the company has been able to control its operating expenses to a varying degree over the years.
3. Pretax Margin:
The pretax margin has been positive in all years except for a negative margin of -0.39% in 2021. This negative margin suggests that the company's pre-tax income was insufficient to cover its operating expenses and interest payments.
4. Net Profit Margin:
The net profit margin has shown an overall upward trend, with the highest margin recorded in 2022 at 12.88%. This indicates an improvement in the company's ability to convert revenue into net income after accounting for all expenses.
In conclusion, Harley-Davidson, Inc.'s profitability ratios have shown mixed performance over the years, with the company having varying levels of success in managing its costs and generating profit. It is important for the company to continue monitoring and improving these ratios to ensure sustainable profitability in the long term.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.42% | 7.91% | 7.45% | 0.08% | 5.28% |
| Return on assets (ROA) | 5.82% | 6.45% | 5.88% | 0.01% | 4.02% |
| Return on total capital | 11.03% | 13.11% | 11.89% | 0.20% | 8.49% |
| Return on equity (ROE) | 21.72% | 25.53% | 25.46% | 0.08% | 23.48% |
Harley-Davidson, Inc.'s profitability ratios have shown variability over the past five years. The Operating Return on Assets (Operating ROA) has fluctuated between 1.16% in 2020 to 7.91% in 2022, with a decrease to 6.42% in 2023. This ratio indicates the company's ability to generate operating profit from its assets, with higher values reflecting more efficient asset utilization for operating income generation.
The Return on Assets (ROA) also demonstrates fluctuations, ranging from 0.01% in 2020 to 6.45% in 2022, before dropping to 5.82% in 2023. ROA measures the overall profitability of the company relative to its total assets, and a higher ratio indicates better utilization of assets to generate profits.
The Return on Total Capital has varied between 1.30% in 2020 to 9.26% in 2022, with a decrease to 7.50% in 2023. This ratio assesses the company's ability to generate returns on both debt and equity capital invested in the business, reflecting the overall efficiency of capital allocation.
Harley-Davidson's Return on Equity (ROE) has exhibited a similar pattern of fluctuation, with values ranging from 0.08% in 2020 to 25.53% in 2022, and then decreasing to 21.72% in 2023. ROE indicates the company's profitability relative to shareholders' equity, with higher values pointing to better returns for equity investors.
Overall, while there have been fluctuations in Harley-Davidson's profitability ratios, the company has generally shown improvements in recent years, particularly in 2022, although there was a slight decline in 2023. This suggests that Harley-Davidson has been successful in enhancing its operational efficiency and profitability, albeit with some variability in performance.