Heidrick & Struggles International (HSII)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 30,652 | 88,671 | 115,236 | 106,029 | -31,398 |
| Revenue | US$ in thousands | 1,115,680 | 1,041,180 | 1,083,590 | 1,008,470 | 629,370 |
| Pretax margin | 2.75% | 8.52% | 10.63% | 10.51% | -4.99% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $30,652K ÷ $1,115,680K
= 2.75%
Heidrick & Struggles International's pretax margin has displayed fluctuations over the recent years. The company experienced a significant improvement in its pretax margin from -4.99% as of December 31, 2020, to 10.51% as of December 31, 2021. This sharp increase indicates an enhanced efficiency in controlling operating expenses relative to revenue generation.
In the subsequent years, the pretax margin remained relatively stable, with slight fluctuations. As of December 31, 2022, the pretax margin further improved to 10.63%, showcasing the company's ability to maintain profitability. However, there was a slight decrease in pretax margin to 8.52% as of December 31, 2023, which might be indicative of challenges faced by the company in managing costs or generating revenue.
By the end of December 31, 2024, Heidrick & Struggles International experienced a notable decline in its pretax margin to 2.75%. This reduction may suggest increased operating expenses or a decline in revenue compared to the previous year.
Overall, while the company demonstrated a strong recovery and sustainable profitability in the initial years of the period under review, the decreasing trend in pretax margin towards the end of the period raises potential concerns regarding its operational efficiency and financial performance.
Peer comparison
Dec 31, 2024