Hawkins Inc (HWKN)
Profitability ratios
Return on sales
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 23.15% | 21.07% | 17.66% | 18.92% | 20.74% |
| Operating profit margin | 12.23% | 11.32% | 9.43% | 9.19% | 9.36% |
| Pretax margin | 11.74% | 11.00% | 8.83% | 9.03% | 9.36% |
| Net profit margin | 8.66% | 8.20% | 6.42% | 6.65% | 6.87% |
Hawkins Inc's profitability ratios have shown fluctuations over the past five years. The gross profit margin, which indicates the percentage of revenue remaining after deducting the cost of goods sold, decreased from 20.74% in 2021 to 17.66% in 2023 but then increased to 23.15% in 2025, indicating an improvement in the company's ability to generate profits from its core business activities.
The operating profit margin, which shows the proportion of revenue that translates into operating income, remained relatively stable around 9% from 2021 to 2023 before experiencing a significant increase to 12.23% in 2025. This suggests that the company became more efficient in managing its operating expenses and generating operating profits in the later years.
Similarly, the pretax margin, representing the percentage of revenue that converts into pre-tax income, fluctuated between 8.83% and 11.74% during the period under review. The upward trend towards the later years indicates an improvement in the company's overall profitability before tax implications.
In terms of net profit margin, which reflects the percentage of revenue remaining as net income after all expenses have been deducted, there was a slight decrease from 6.87% in 2021 to 6.42% in 2023, followed by an increase to 8.66% in 2025. This suggests that the company was able to enhance its bottom line profitability in the most recent year.
Overall, the analysis of Hawkins Inc's profitability ratios demonstrates both fluctuations and improvements in the company's ability to generate profits at different stages over the past five years.
Return on investment
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.48% | 15.81% | 14.93% | 12.55% | 11.82% |
| Return on assets (ROA) | 10.96% | 11.45% | 10.17% | 9.09% | 8.67% |
| Return on total capital | 0.00% | 25.97% | 25.09% | 23.59% | 21.61% |
| Return on equity (ROE) | 18.32% | 18.56% | 17.15% | 17.03% | 15.45% |
Hawkins Inc has shown a positive trend in its profitability ratios over the past five years. The Operating Return on Assets (Operating ROA) has steadily increased from 11.82% in March 31, 2021 to 15.48% in March 31, 2025, indicating the company's ability to generate profit from its operational assets.
Similarly, the Return on Assets (ROA) has also shown a consistent improvement from 8.67% in March 31, 2021 to 10.96% in March 31, 2025, reflecting the company's efficiency in generating profits from its total assets.
However, the Return on Total Capital has unexpectedly dropped to 0.00% in March 31, 2025 after experiencing steady growth in the previous years. This could be a cause for concern as it suggests a potential inefficiency in utilizing the total capital invested in the company.
On the other hand, the Return on Equity (ROE) has shown a positive trend, increasing from 15.45% in March 31, 2021 to 18.32% in March 31, 2025, indicating the company's ability to generate return for its shareholders.
Overall, while Hawkins Inc has demonstrated strong profitability performance based on operating and asset utilization metrics, the decline in Return on Total Capital warrants further investigation to understand the reasons behind this unexpected drop and address any potential inefficiencies in capital allocation.