Haverty Furniture Companies Inc (HVT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 60.29% | 57.62% | 56.72% | 53.50% | 54.07% |
| Operating profit margin | 7.74% | 11.24% | 11.67% | 14.24% | 3.46% |
| Pretax margin | 8.38% | 11.40% | 11.70% | 9.80% | 3.57% |
| Net profit margin | 6.49% | 8.52% | 8.96% | 7.55% | 2.72% |
Haverty Furniture Companies Inc has shown a consistent improvement in its profitability ratios over the past five years. The gross profit margin has increased steadily from 54.07% in 2019 to 60.29% in 2023, indicating the company's ability to generate more revenue after accounting for the cost of goods sold.
The operating profit margin also demonstrates a positive trend, with a peak of 14.24% in 2020, before experiencing a slight decline in subsequent years. This margin indicates the company's efficiency in managing its operating expenses and generating profits from its core business activities.
Similarly, the pretax margin has shown improvement over the years, reaching its highest level of 11.70% in 2021 before decreasing slightly in the following years. This ratio reflects the company's ability to generate profits before accounting for tax expenses.
The net profit margin, a key indicator of overall profitability, has also exhibited a positive trajectory, increasing from 2.72% in 2019 to 6.49% in 2023. This trend signifies Haverty Furniture Companies Inc's effective management of both its operating and non-operating expenses to maximize its bottom-line profits.
Overall, the profitability ratios of Haverty Furniture Companies Inc indicate a consistent and favorable performance, showcasing the company's ability to efficiently generate profits and sustain profitability over the past five 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) | 10.26% | 18.16% | 17.23% | 16.39% | 4.96% |
| Return on assets (ROA) | 8.61% | 13.77% | 13.23% | 8.69% | 3.90% |
| Return on total capital | 21.77% | 40.72% | 46.20% | 44.08% | 10.66% |
| Return on equity (ROE) | 18.26% | 30.88% | 35.47% | 23.38% | 8.39% |
Haverty Furniture Companies Inc has demonstrated a consistent level of profitability over the past five years, as evidenced by the profitability ratios analyzed.
1. Operating return on assets (Operating ROA) has exhibited a general positive trend, with fluctuations, from 4.96% in 2019 to 10.26% in 2023. This ratio indicates the company's ability to generate operating income from its assets, showing an improvement in efficiency and profitability over the years.
2. Return on assets (ROA) has also shown a similar upward trend, from 3.90% in 2019 to 8.61% in 2023. This ratio reflects the company's overall profitability in relation to its total assets, suggesting an enhanced ability to generate profits from its asset base.
3. Return on total capital has experienced significant fluctuations but has generally increased from 10.66% in 2019 to 21.77% in 2023. This ratio highlights the company's efficiency in generating returns from both equity and debt capital employed in its operations.
4. Return on equity (ROE) has shown a consistent positive trajectory, rising from 8.39% in 2019 to 18.26% in 2023. This ratio signifies the company's ability to generate profits for its shareholders based on the equity invested, indicating improved financial performance and shareholder value creation.
Overall, the profitability ratios for Haverty Furniture Companies Inc indicate a favorable performance in terms of generating profits from its assets, capital, and equity over the past five years. These trends suggest that the company has been effective in managing its resources and maximizing returns for its stakeholders.