Heidrick & Struggles International (HSII)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 9.74% | 19.33% | 15.18% | -4.52% | 29.65% |
| Operating profit margin | 7.24% | 10.36% | 9.74% | -5.65% | 8.75% |
| Pretax margin | 8.52% | 10.63% | 10.51% | -4.99% | 9.55% |
| Net profit margin | 5.23% | 7.34% | 7.20% | -5.99% | 6.46% |
Heidrick & Struggles International, Inc. has shown a consistent trend of declining profitability ratios over the past five years. The gross profit margin has decreased from 100% in 2020 to 89.53% in 2023. This indicates a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
Similarly, the operating profit margin has also shown a downward trend, declining from 10.36% in 2022 to 7.93% in 2023. This ratio reflects the company's ability to generate profits from its core operations after deducting operating expenses.
The pretax margin has fluctuated over the years, with a significant negative margin of -4.99% in 2020, indicating that the company incurred losses before accounting for taxes. While there has been improvement since then, the pretax margin of 8.52% in 2023 is still lower compared to previous years.
Lastly, the net profit margin, which represents the percentage of revenue converted into net profit, has also exhibited a declining trend. The net profit margin has decreased from 6.46% in 2019 to 5.23% in 2023.
Overall, the decreasing trend in profitability ratios suggests that Heidrick & Struggles International, Inc. may be facing challenges in maintaining or improving its profitability levels. Further analysis of the company's cost structure, revenue streams, and efficiency measures may be needed to address these declining profitability ratios.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.60% | 9.55% | 8.88% | -4.51% | 7.52% |
| Return on assets (ROA) | 4.77% | 6.76% | 6.56% | -4.79% | 5.55% |
| Return on total capital | 16.30% | 27.34% | 29.24% | -13.28% | 20.55% |
| Return on equity (ROE) | 11.77% | 19.36% | 21.60% | -14.09% | 15.16% |
Heidrick & Struggles International, Inc., has shown variability in its profitability ratios over the past five years.
1. Operating return on assets (Operating ROA) has ranged from 6.32% to 9.55%, with a slight decline in 2023 to 7.24%. This ratio measures the company's operating income generated per dollar of assets, indicating a moderate level of operational efficiency.
2. Return on assets (ROA) fluctuated significantly, from a negative figure of -4.79% in 2020 to a high of 6.76% in 2022. In 2023, it decreased to 4.77%, implying that the company's net income generated per dollar of assets was moderate but showed a decline in profitability.
3. Return on total capital has varied as well, ranging from 17.87% to 30.37% over the past five years. This ratio indicates the overall profitability of the company's total invested capital, including both debt and equity. The significant decrease in 2023 to 17.87% suggests a reduction in the return generated for all capital providers.
4. Return on equity (ROE) demonstrated fluctuations, with the highest figure of 21.60% in 2021 and the lowest of -14.09% in 2020, indicating a loss. In 2023, the ROE was 11.77%, showing a moderate return generated for shareholders' equity during that year.
Overall, despite the variability in profitability ratios over the years, Heidrick & Struggles International, Inc., has shown a mix of operational efficiency and varying levels of profitability. The company's management may need to focus on strategies to enhance profitability and ensure consistent returns for both capital providers and shareholders.