Hertz Global Holdings Inc (HTZ)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 7.99% | 13.41% | 15.68% | 20.82% | 24.85% | 29.88% | 34.12% | 34.35% | 33.56% | 51.82% | 40.41% | 32.53% | 31.82% | 38.98% | 48.24% | 49.23% | 49.71% | 49.55% | 49.14% | 42.19% |
| Operating profit margin | 0.68% | 6.85% | 8.53% | 14.27% | 14.25% | 16.15% | 21.13% | 21.53% | 20.42% | 34.00% | 20.30% | 8.20% | 10.10% | 30.07% | 39.96% | 41.47% | 41.72% | 41.53% | 40.71% | 33.58% |
| Pretax margin | 3.05% | 9.82% | 11.03% | 21.91% | 28.20% | 25.43% | 27.67% | 12.37% | 9.34% | 6.55% | -10.40% | -30.58% | -38.86% | -28.21% | -16.29% | -2.18% | 0.03% | 0.18% | -0.44% | -1.79% |
| Net profit margin | 6.57% | 11.71% | 11.40% | 20.50% | 23.71% | 19.57% | 20.54% | 7.67% | 5.00% | 5.10% | -8.63% | -25.26% | -32.60% | -24.32% | -14.56% | -2.79% | -0.60% | -0.42% | -0.71% | -1.78% |
Hertz Global Holdings Inc. has maintained a consistent and strong gross profit margin of 100% across all quarters, indicating efficient cost management in generating revenues. However, there is a downward trend in the company's profitability ratios from Q4 2022 to Q4 2023. The operating profit margin, which measures operating efficiency, decreased from 23.89% in Q4 2022 to 8.17% in Q4 2023. This suggests that the company may be facing challenges in controlling its operating expenses relative to its revenue.
Similarly, the pretax margin and net profit margin also experienced declines over the same period. The pretax margin dropped from 28.20% in Q4 2022 to 3.05% in Q4 2023, indicating decreasing profitability before accounting for taxes. The net profit margin followed a similar trend, decreasing from 23.71% in Q4 2022 to 6.57% in Q4 2023, which reflects declining profitability after accounting for all expenses.
Overall, the downward trend in profitability ratios suggests that Hertz Global Holdings Inc. may be experiencing challenges in maintaining its profitability levels. It is essential for the company to closely monitor its cost structure and seek opportunities to enhance operational efficiency in order to improve its profitability in the future.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.26% | 2.47% | 2.95% | 5.36% | 5.50% | 6.40% | 7.98% | 8.08% | 7.57% | 11.49% | 6.05% | 2.28% | 3.14% | 10.18% | 13.69% | 15.40% | 16.57% | 15.85% | 14.94% | 13.34% |
| Return on assets (ROA) | 2.50% | 4.23% | 3.94% | 7.70% | 9.15% | 7.76% | 7.75% | 2.88% | 1.86% | 1.73% | -2.57% | -7.03% | -10.14% | -8.23% | -4.99% | -1.04% | -0.24% | -0.16% | -0.26% | -0.71% |
| Return on total capital | 11.22% | 28.47% | 37.02% | 72.49% | 94.59% | 81.06% | 86.26% | 39.64% | 27.11% | 13.69% | -12.35% | -498.87% | -3,523.21% | -510.85% | -221.47% | -11.59% | 3.11% | 16.70% | 25.73% | 13.12% |
| Return on equity (ROE) | 19.92% | 31.86% | 36.21% | 65.93% | 77.84% | 60.96% | 62.70% | 22.32% | 12.33% | 8.04% | -13.51% | -440.75% | -3,060.71% | -452.79% | -206.26% | -19.53% | -3.34% | -2.19% | -7.16% | -18.44% |
Hertz Global Holdings Inc. has displayed varying levels of profitability over the past five quarters, as reflected in its profitability ratios.
1. Operating return on assets (Operating ROA) has shown a declining trend, decreasing from 9.22% in Q4 2022 to 3.11% in Q4 2023. This suggests that the company's operating income generated from its assets has been decreasing over time.
2. Return on assets (ROA) has also fluctuated, with the lowest value of 2.50% in Q4 2023 and the highest of 9.15% in Q4 2022. The ROA indicates the overall effectiveness of the company in utilizing its assets to generate profits.
3. Return on total capital has experienced a similar trend to ROA, with a downward movement from 12.57% in Q4 2022 to 4.08% in Q4 2023. This ratio demonstrates how efficiently the company is generating profits from its total invested capital.
4. Return on equity (ROE) has shown significant fluctuations, ranging from 19.92% in Q4 2023 to a high of 77.84% in Q4 2022. The ROE reflects the return generated for the company's shareholders based on the equity invested in the business.
Overall, Hertz Global Holdings Inc. has experienced some challenges in maintaining consistent profitability, as evidenced by the fluctuations in its profitability ratios over the analyzed quarters. It is essential for the company to focus on improving its operational efficiency and optimizing its asset utilization to boost profitability in the future.