Heidrick & Struggles International (HSII)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 9.83% | 11.46% | 14.04% | 17.37% | 19.40% | 17.78% | 17.46% | 15.50% | 13.62% | 12.68% | 2.86% | -4.51% | 0.73% | -1.41% | 11.42% | 21.88% | 21.90% | 29.37% | 29.45% | 28.76% |
| Operating profit margin | 7.24% | 7.17% | 7.85% | 9.60% | 10.36% | 9.63% | 10.01% | 9.91% | 9.74% | 10.21% | 2.44% | -5.25% | -5.65% | -4.57% | 3.31% | 9.01% | 8.75% | 9.00% | 9.76% | 9.65% |
| Pretax margin | 8.52% | 8.47% | 9.10% | 10.59% | 10.64% | 9.74% | 10.03% | 10.11% | 10.51% | 11.34% | 3.93% | -3.54% | -4.99% | -4.19% | 3.47% | 8.95% | 7.69% | 7.60% | 8.67% | 8.42% |
| Net profit margin | 5.23% | 5.44% | 6.07% | 7.36% | 7.34% | 6.71% | 6.99% | 6.93% | 7.20% | 7.43% | 1.96% | -4.86% | -5.99% | -5.02% | 0.50% | 6.00% | 6.46% | 6.49% | 7.32% | 6.85% |
Heidrick & Struggles International, Inc.'s profitability ratios have shown a declining trend over the quarters in 2023. The Gross profit margin gradually decreased from 92.74% in Q1 to 89.53% in Q4, indicating a reduction in the percentage of revenue retained after accounting for cost of goods sold.
Similarly, the Operating profit margin declined from 9.60% in Q1 to 7.93% in Q4, indicating a decrease in the efficiency of the company's core operations. The Pretax margin and Net profit margin also followed a downward trajectory, with the former decreasing from 10.59% in Q1 to 8.52% in Q4, and the latter falling from 7.36% in Q1 to 5.23% in Q4.
Overall, the deteriorating profitability ratios suggest potential challenges in managing operating expenses, generating revenue, and controlling costs. Further analysis into the specific factors influencing these ratios would be necessary to determine the underlying reasons for the declining profitability.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 4.77% | 5.34% | 6.37% | 8.59% | 6.76% | 7.07% | 8.10% | 8.51% | 6.56% | 6.92% | 1.80% | -4.63% | -4.79% | -4.58% | 0.44% | 5.48% | 5.55% | 6.12% | 7.67% | 7.62% |
| Return on total capital | 16.30% | 16.70% | 18.57% | 23.70% | 27.34% | 28.35% | 30.95% | 31.04% | 29.24% | 27.90% | 6.22% | -12.23% | -13.28% | -11.40% | 5.94% | 20.94% | 20.55% | 22.22% | 24.97% | 26.38% |
| Return on equity (ROE) | 11.77% | 12.66% | 14.34% | 18.19% | 19.36% | 19.74% | 21.60% | 21.73% | 21.60% | 20.30% | 4.99% | -11.32% | -14.09% | -12.52% | 1.20% | 13.94% | 15.16% | 16.02% | 18.73% | 18.73% |
Heidrick & Struggles International, Inc.'s profitability ratios have shown some fluctuation over the past eight quarters.
1. Operating return on assets (Operating ROA) has ranged from 7.24% to 12.15% during this period, indicating the company's ability to generate operating income relative to its total assets. The decreasing trend from Q1 2023 to Q4 2023 might suggest a decline in operational efficiency.
2. Return on assets (ROA) has varied between 4.77% and 8.59%, reflecting the company's overall profitability in relation to its total assets. The decrease in Q4 2023 compared to Q1 2023 may highlight a decline in overall profitability.
3. Return on total capital ranges from 17.87% to 31.02%, indicating the company's ability to generate earnings in relation to the total capital invested. The downward trend in this ratio over the last quarters might suggest decreasing efficiency in utilizing total capital.
4. Return on equity (ROE) has fluctuated between 11.77% and 21.73% over the past eight quarters, representing the return generated on shareholders' equity. The declining trend in ROE from Q1 2023 to Q4 2023 might indicate potential inefficiencies in generating profits solely from shareholders' equity.
In conclusion, Heidrick & Struggles International, Inc. should consider closely monitoring and addressing the factors contributing to the decline in some profitability ratios, particularly in the recent quarters, to ensure sustained financial performance and shareholder value.