Heidrick & Struggles International (HSII)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 75,357 | 112,266 | 98,264 | -35,529 | 63,511 |
| Revenue | US$ in thousands | 1,041,180 | 1,083,590 | 1,008,470 | 629,370 | 725,614 |
| Operating profit margin | 7.24% | 10.36% | 9.74% | -5.65% | 8.75% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $75,357K ÷ $1,041,180K
= 7.24%
The operating profit margin of Heidrick & Struggles International, Inc. has shown fluctuations over the past five years. In 2023, the operating profit margin decreased to 7.93% from 10.36% in 2022, showcasing a decline in the company's profitability. However, the 2023 margin was still higher than the 7.91% recorded in 2020.
Compared to the peak in 2022, the decrease in the operating profit margin in 2023 could be a cause for concern as it indicates a potential decrease in efficiency in generating profits from operations. Further analysis into the factors behind this decline, such as changes in revenue, operating expenses, or cost management, would be necessary to determine the root cause of the margin decrease and assess the company's overall financial health.
Peer comparison
Dec 31, 2023