Hertz Global Holdings Inc (HTZ)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | -2.77% | 18.44% | 34.93% | 37.12% | -7.63% |
| Operating profit margin | -11.82% | 8.07% | 23.87% | 28.03% | -20.08% |
| Pretax margin | -35.77% | 3.05% | 28.20% | 9.31% | -39.03% |
| Net profit margin | -31.63% | 6.57% | 23.71% | 4.99% | -32.77% |
Based on the provided data, we can analyze the profitability ratios of Hertz Global Holdings Inc over the years from 2020 to 2024.
1. Gross Profit Margin:
- The gross profit margin indicates the percentage of revenue that exceeds the cost of goods sold.
- In 2020, the gross profit margin was negative at -7.63%, indicating that the company was selling its products at a loss.
- However, there was a significant improvement in 2021, with the gross profit margin jumping to 37.12%.
- The margin remained relatively high in 2022 at 34.93%, but experienced a decline in 2023 to 18.44% and turned negative again in 2024 at -2.77%.
2. Operating Profit Margin:
- The operating profit margin measures the percentage of revenue that remains after deducting operating expenses.
- In 2020, the operating profit margin was negative at -20.08%, indicating operational inefficiencies or high costs.
- There was a notable improvement in 2021, with the operating profit margin increasing to 28.03%.
- The margin remained positive but decreased in 2022 to 23.87%, further dropping in 2023 to 8.07%, and turning negative in 2024 at -11.82%.
3. Pretax Margin:
- The pretax margin signifies the percentage of revenue remaining after accounting for all expenses except for taxes.
- Hertz had a significant negative pretax margin in 2020 at -39.03%, indicating substantial pre-tax losses.
- There was a turnaround in 2021 with a positive pretax margin of 9.31%, which further improved in 2022 to 28.20%.
- The margin decreased in 2023 to 3.05% and turned strongly negative in 2024 at -35.77%.
4. Net Profit Margin:
- The net profit margin gives the percentage of revenue left as profit after all expenses, including taxes.
- Hertz had a negative net profit margin in 2020 at -32.77%, indicating net losses.
- The margin turned positive in 2021 at 4.99% and increased in 2022 to 23.71%.
- However, there was a decrease in 2023 to 6.57% and a substantial drop into negative territory again in 2024 at -31.63%.
Overall, the profitability ratios of Hertz Global Holdings Inc show fluctuations over the years, with significant improvements in 2021 and 2022 followed by declines in 2023 and 2024, highlighting the company's varying profitability performance during this period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -4.91% | 3.07% | 9.21% | 10.39% | -6.25% |
| Return on assets (ROA) | -13.13% | 2.50% | 9.15% | 1.85% | -10.19% |
| Return on total capital | -1,488.89% | 34.70% | 109.79% | 18.37% | -2,578.57% |
| Return on equity (ROE) | -1,870.59% | 19.92% | 77.84% | 12.29% | -3,076.79% |
Based on the provided data for Hertz Global Holdings Inc, the profitability ratios exhibit significant fluctuations over the years.
1. Operating return on assets (Operating ROA):
- In December 2020, the Operating ROA was negative at -6.25%, indicating that the company's operating income generated from its assets was insufficient.
- Subsequently, there was a sharp improvement in December 2021 to 10.39%, signifying the company's ability to effectively utilize its assets to generate operating profits.
- In the following years, Operating ROA remained positive but showed a slight decrease, settling at 3.07% by December 2023.
2. Return on assets (ROA):
- ROA was negative in December 2020 at -10.19%, indicating that the company failed to generate profits from its total assets.
- There was a noticeable improvement in December 2021, turning positive at 1.85%, but it remained relatively low.
- ROA reached its peak in December 2022 at 9.15%, showcasing the company's enhanced profitability from its assets before declining to 2.50% by December 2023.
3. Return on total capital:
- The return on total capital was exceptionally negative in December 2020 at -2,578.57%, signifying a significant loss relative to the total capital invested.
- Subsequently, there was a substantial recovery in December 2021 to 18.37%, indicating a positive return achieved on the total invested capital.
- The return on total capital surged to 109.79% by December 2022, displaying a notable improvement in capital efficiency before declining to 34.70% by December 2023.
4. Return on equity (ROE):
- ROE was dramatically negative in December 2020 at -3,076.79%, suggesting a massive loss concerning the shareholders' equity.
- The situation improved notably in December 2021 to 12.29%, implying a positive return earned on the shareholders' equity.
- In December 2022, ROE significantly increased to 77.84%, demonstrating enhanced profitability from the shareholder's perspective before declining to 19.92% by December 2023.
Overall, the profitability ratios of Hertz Global Holdings Inc indicate fluctuations in profitability performance over the years, reflecting varying levels of efficiency in generating profits from assets, capital, and equity.