Hertz Global Holdings Inc (HTZ)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 7.99% | 23.89% | 32.88% | 7.53% | 31.09% |
| Operating profit margin | -1.58% | 12.55% | 17.60% | -17.29% | 18.13% |
| Pretax margin | 3.05% | 28.20% | 9.32% | -38.86% | 0.05% |
| Net profit margin | 6.57% | 23.71% | 4.99% | -32.60% | -0.59% |
Hertz Global Holdings Inc.'s profitability ratios highlight fluctuations in its performance over the three years analyzed. The gross profit margin remained consistently strong at 100% across all three years, indicating efficient management of production costs.
However, the operating profit margin showed a decline from 27.74% in 2021 to 8.17% in 2023, suggesting decreasing operational efficiency or increasing operating expenses.
The pretax margin also exhibited variability, dropping from 28.20% in 2022 to 3.05% in 2023. This decline may denote increased interest expenses or one-time charges impacting profitability.
Despite the fluctuations in other ratios, the net profit margin improved significantly from -1.15% in 2021 to 6.57% in 2023, indicating better overall profitability after incurring a loss in the previous year.
Overall, while some profitability ratios have shown volatility, the net profit margin seems to have recovered positively, indicating potential improvements in Hertz Global Holdings Inc.'s bottom-line performance over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.60% | 4.85% | 6.53% | -5.38% | 7.20% |
| Return on assets (ROA) | 2.50% | 9.15% | 1.85% | -10.14% | -0.24% |
| Return on total capital | 11.22% | 94.59% | 27.07% | -3,523.21% | 3.22% |
| Return on equity (ROE) | 19.92% | 77.84% | 12.29% | -3,060.71% | -3.28% |
Hertz Global Holdings Inc. has shown a declining trend in profitability ratios over the years as indicated by the figures provided.
1. Operating return on assets (Operating ROA) has decreased significantly from 10.29% in 2021 to 3.11% in 2023. This suggests that the company's operating income generated from its assets has declined.
2. Return on assets (ROA) also faced a significant drop, moving from a positive 9.15% in 2022 to 2.50% in 2023. This indicates a lower overall profitability relative to its total assets.
3. Return on total capital has followed a similar pattern, with a decrease from 14.66% in 2021 to 4.08% in 2023. This suggests that the returns generated from the total capital employed by the company have diminished.
4. Return on equity (ROE) has experienced a substantial decrease from 77.84% in 2022 to 19.92% in 2023. This indicates a lower return on shareholders' equity compared to the previous year.
Overall, the declining trend in profitability ratios for Hertz Global Holdings Inc. over the years raises concerns about its ability to efficiently generate profits from its assets and capital. Investors and stakeholders may need to closely monitor the company's financial performance and management strategies to ensure sustainable profitability in the future.