H&R Block Inc (HRB)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 18.78% | 17.97% | 17.47% | 17.58% | -4.18% |
| Operating profit margin | -8.38% | -9.02% | -11.30% | -11.36% | -44.08% |
| Pretax margin | 21.51% | 20.68% | 19.32% | 20.02% | -0.67% |
| Net profit margin | 16.86% | 16.29% | 16.40% | 17.65% | -0.30% |
H&R Block Inc's profitability ratios have shown fluctuations over the past five years. The gross profit margin has been relatively stable, fluctuating between 17.47% and 18.78%, indicating a consistent level of efficiency in generating revenue after accounting for the cost of goods sold.
However, the operating profit margin, which reflects the company's ability to control operating expenses, has been negative over the same period, ranging from -8.38% to -44.08%. This suggests that H&R Block has struggled to generate profits from its core business operations after accounting for all operating expenses.
On the other hand, the pretax margin has shown a positive trend, increasing from -0.67% in 2020 to 21.51% in 2024. This improvement indicates that the company has been successful in managing its tax liabilities and other non-operating expenses to a more favorable position.
Similarly, the net profit margin has also exhibited a positive trend, rising from -0.30% in 2020 to 16.86% in 2024. This indicates H&R Block's ability to effectively manage its overall expenses and generate profits at the bottom line.
Overall, while the company has shown improvements in its pretax and net profit margins, there are still challenges in achieving a positive operating profit margin. H&R Block may need to focus on controlling its operating expenses to improve overall profitability in the future.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -9.19% | -9.99% | -11.67% | -10.29% | -21.94% |
| Return on assets (ROA) | 18.49% | 18.02% | 16.94% | 15.98% | -0.15% |
| Return on total capital | 53.03% | 51.02% | 43.59% | 41.75% | 2.71% |
| Return on equity (ROE) | 657.13% | 1,726.86% | 261.62% | 165.66% | -10.59% |
H&R Block Inc's profitability ratios reflect fluctuations over the years.
- Operating return on assets (Operating ROA) has shown a negative trend from -9.19% in 2024 to -21.94% in 2020. This indicates that the company's core operations have been less efficient in generating profits relative to its assets.
- Return on assets (ROA) has been positive and generally increasing, reaching 18.49% in 2024. This suggests that the company is effectively generating profits from its assets.
- Return on total capital has also exhibited an upward trend, increasing from 2.71% in 2020 to 53.03% in 2024. This indicates that the company has been able to generate higher returns on the total capital employed in its operations.
- Return on equity (ROE) has shown significant fluctuations, with a sharp increase from -10.59% in 2020 to 1,726.86% in 2023. This suggests that the company's shareholders' equity has been leveraged effectively to generate returns, though the ratio may be heavily influenced by the company's capital structure.
Overall, H&R Block Inc's profitability ratios show improvements in generating returns on assets and capital employed, with the ROE reflecting higher profitability for the shareholders, albeit with some volatility.