Heidrick & Struggles International (HSII)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 8,728 | 54,410 | 79,486 | 72,572 | -37,707 |
| Total assets | US$ in thousands | 1,194,190 | 1,141,590 | 1,175,640 | 1,106,800 | 787,812 |
| ROA | 0.73% | 4.77% | 6.76% | 6.56% | -4.79% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $8,728K ÷ $1,194,190K
= 0.73%
The return on assets (ROA) for Heidrick & Struggles International has shown variability over the past five years based on the provided data.
- As of December 31, 2020, the ROA was negative at -4.79%. This indicates that the company's net income generated from its assets was insufficient to cover its total assets.
- The ROA improved significantly to 6.56% by the end of December 31, 2021, showcasing a positive growth trend and more efficient asset utilization.
- By December 31, 2022, the ROA further increased to 6.76%, indicating continued improvement in generating earnings from its asset base.
- However, the ROA slightly declined to 4.77% by the end of December 31, 2023, suggesting a potential dip in asset productivity compared to the previous year.
- The most recent data point, as of December 31, 2024, shows a ROA of 0.73%, which is the lowest among the reported years. This may raise concerns about the company's ability to generate sufficient earnings relative to its asset investments.
Overall, the trend in ROA for Heidrick & Struggles International has been mixed, with periods of improvement and slight declines. It's essential for the company to maintain or enhance its asset efficiency to ensure sustainable profitability and value creation for its stakeholders.
Peer comparison
Dec 31, 2024