HealthStream Inc (HSTM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.16% | 24.75% | 22.26% | 23.20% | 19.50% |
| Operating profit margin | 5.74% | 4.67% | 3.14% | 6.46% | 5.79% |
| Pretax margin | 6.63% | 5.84% | 3.03% | 7.28% | 7.67% |
| Net profit margin | 5.45% | 4.53% | 2.28% | 5.76% | 6.21% |
Healthstream Inc's profitability ratios have shown a mixed trend over the past five years. The gross profit margin has been consistently increasing, indicating the company's ability to effectively manage its production costs and generate revenue. This trend suggests improved efficiency in the production process.
However, the operating profit margin fluctuated during this period, with a significant increase in 2023 compared to the previous years. This could be a result of fluctuations in operating expenses and revenue generation. The 2023 operating profit margin indicates an improvement in operational efficiency and cost management.
The pretax margin also varied over the years, with a notable increase in 2023 compared to previous years. This improvement suggests that the company's income before taxes has been increasing at a relatively faster rate compared to operating costs.
In terms of net profit margin, there was a similar pattern of fluctuation, with a significant increase in 2023 compared to the previous years. The 2023 net profit margin indicates that Healthstream Inc was able to increase its profitability after accounting for all expenses and taxes.
Overall, Healthstream Inc has shown improvements in its profitability ratios in 2023, especially in terms of operating profit margin, pretax margin, and net profit margin. These trends suggest that the company has been successful in managing costs, increasing revenue, and maximizing profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.20% | 2.50% | 1.65% | 3.16% | 3.01% |
| Return on assets (ROA) | 3.04% | 2.43% | 1.20% | 2.82% | 3.22% |
| Return on total capital | 4.70% | 3.73% | 2.38% | 4.74% | 4.35% |
| Return on equity (ROE) | 4.46% | 3.62% | 1.72% | 4.22% | 4.66% |
Healthstream Inc's profitability ratios have shown some fluctuation over the past five years. In terms of operating profitability, the company's Operating Return on Assets (Operating ROA) has generally been increasing, with a notable improvement from 1.65% in 2021 to 3.20% in 2023.
Similarly, Return on Assets (ROA) has also improved from 1.20% in 2021 to 3.04% in 2023, indicating a better utilization of assets to generate profits. However, there was a dip in 2022 before the recovery in 2023.
Return on Total Capital and Return on Equity (ROE) have followed a similar trend, showing improvements in 2023 compared to the previous years. Return on Total Capital increased from 2.38% in 2021 to 4.70% in 2023, while ROE rose from 1.72% in 2021 to 4.46% in 2023.
Overall, the increasing trend in these profitability ratios suggests that Healthstream Inc has been more effective in generating profits relative to its assets and capital over the past few years. However, the company should continue to monitor these ratios to ensure sustainable and consistent profitability in the future.