Heidrick & Struggles International (HSII)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 75,357 | 73,339 | 79,524 | 99,805 | 112,266 | 109,028 | 114,048 | 108,888 | 98,264 | 90,194 | 18,619 | -34,073 | -35,529 | -29,772 | 22,933 | 65,272 | 63,511 | 65,908 | 72,019 | 72,127 |
| Total assets | US$ in thousands | 1,141,590 | 1,041,250 | 964,455 | 891,465 | 1,175,640 | 1,073,250 | 982,066 | 895,572 | 1,106,800 | 948,632 | 832,066 | 680,606 | 787,812 | 713,309 | 788,358 | 792,530 | 844,173 | 776,623 | 704,010 | 671,982 |
| Operating ROA | 6.60% | 7.04% | 8.25% | 11.20% | 9.55% | 10.16% | 11.61% | 12.16% | 8.88% | 9.51% | 2.24% | -5.01% | -4.51% | -4.17% | 2.91% | 8.24% | 7.52% | 8.49% | 10.23% | 10.73% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $75,357K ÷ $1,141,590K
= 6.60%
Heidrick & Struggles International, Inc.'s operating return on assets (operating ROA) has shown a general decline over the past eight quarters. The operating ROA ranged from a high of 12.15% in Q1 2022 to a low of 7.24% in Q4 2023. This downward trend may indicate potential challenges in the company's operational efficiency and profitability.
The decrease in operating ROA could be attributed to various factors such as increasing operating expenses, declining sales, or inefficient asset utilization. A lower operating ROA suggests that Heidrick & Struggles International, Inc. is generating less operating income relative to its total assets, which may raise concerns for investors and stakeholders.
It is crucial for the company to closely monitor its operating ROA and take necessary actions to improve operational performance and efficiency in order to enhance profitability and maintain competitiveness in the market. Further analysis of the components contributing to the operating ROA decline is recommended to identify specific areas for improvement.
Peer comparison
Dec 31, 2023