HealthStream Inc (HSTM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 66.42% | 65.95% | 65.84% | 64.54% | 63.51% |
| Operating profit margin | 7.30% | 5.74% | 4.67% | 3.14% | 6.46% |
| Pretax margin | 8.50% | 6.63% | 5.84% | 3.03% | 7.28% |
| Net profit margin | 6.86% | 5.45% | 4.53% | 2.28% | 5.76% |
HealthStream Inc has shown consistent improvement in its profitability ratios over the past five years.
The Gross Profit Margin has steadily increased from 63.51% in 2020 to 66.42% in 2024, indicating the company's ability to efficiently manage its production costs and generate higher profits on its sales.
The Operating Profit Margin fluctuated initially but has shown an overall increasing trend, reaching 7.30% in 2024. This signifies that HealthStream has been able to control its operating expenses better and enhance its operational efficiency.
The Pretax Margin has also exhibited a positive trajectory, rising from 7.28% in 2020 to 8.50% in 2024, reflecting the company's improved ability to generate earnings before taxes.
Similarly, the Net Profit Margin has consistently improved, increasing from 5.76% in 2020 to 6.86% in 2024. This metric demonstrates HealthStream's enhanced profitability after accounting for all expenses, including taxes.
Overall, the upward trend in HealthStream Inc's profitability ratios indicates the company's improving financial performance and operational effectiveness over the past five years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.17% | 3.20% | 2.50% | 1.65% | 3.16% |
| Return on assets (ROA) | 3.92% | 3.04% | 2.43% | 1.20% | 2.82% |
| Return on total capital | 5.92% | 5.43% | 3.73% | 2.38% | 4.74% |
| Return on equity (ROE) | 5.57% | 4.46% | 3.62% | 1.72% | 4.22% |
HealthStream Inc's profitability ratios show fluctuating performance over the years. The Operating return on assets (Operating ROA) decreased from 3.16% in 2020 to 1.65% in 2021, but then improved to 4.17% in 2024. This indicates that the company's operating income generated from its assets has been somewhat inconsistent, but showed growth in the latest year.
Similarly, the Return on assets (ROA) declined from 2.82% in 2020 to 1.20% in 2021, but steadily increased to 3.92% by 2024. This ratio reflects how effectively HealthStream Inc is utilizing its assets to generate profits, with a notable improvement in recent years.
The Return on total capital also displayed a mixed trend, starting at 4.74% in 2020, dropping to 2.38% in 2021, then rising to 5.92% in 2024. This metric assesses the company's efficiency in generating returns from both equity and debt investments, demonstrating a recovery and growth in returns over the period.
Lastly, the Return on equity (ROE) followed a similar pattern, decreasing from 4.22% in 2020 to 1.72% in 2021, then increasing to 5.57% in 2024. ROE measures the company's ability to generate profits from shareholders' equity, with HealthStream Inc showing an improvement in return to its equity holders in the later years.
Overall, HealthStream Inc's profitability ratios reflect varying performance levels with signs of improvement in recent years, suggesting the company's efforts to enhance operational efficiency and maximize returns for its stakeholders.