Howmet Aerospace Inc (HWM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 29.27% | 28.53% | 27.73% | 27.62% | 28.12% | 27.55% | 26.96% | 27.35% | 27.55% | 27.67% | 28.04% | 27.80% | 27.67% | 28.32% | 26.68% | 26.19% | 24.33% | 22.54% | 22.35% | 21.46% |
| Operating profit margin | 22.27% | 21.13% | 20.05% | 18.76% | 18.12% | 17.08% | 15.35% | 15.26% | 15.05% | 14.33% | 15.57% | 15.51% | 15.04% | 16.69% | 14.45% | 11.52% | 11.22% | 10.69% | 10.64% | 7.65% |
| Pretax margin | 18.61% | 17.35% | 16.20% | 15.42% | 14.68% | 13.28% | 11.54% | 11.02% | 10.70% | 9.86% | 8.61% | 7.51% | 6.52% | 6.44% | 5.90% | 1.78% | 3.86% | 5.52% | 6.29% | 4.39% |
| Net profit margin | 15.55% | 14.81% | 13.15% | 12.53% | 11.52% | 9.97% | 8.58% | 8.18% | 8.28% | 8.00% | 7.23% | 6.07% | 5.19% | 5.83% | 6.20% | 2.61% | 3.82% | 5.16% | 4.58% | 3.59% |
The profitability ratios of Howmet Aerospace Inc show an improving trend over the years. The gross profit margin has been steadily increasing from 21.46% in March 2020 to 29.27% in December 2024, indicating the company's ability to generate more revenue after accounting for the cost of goods sold.
The operating profit margin has also shown a consistent improvement, rising from 7.65% in March 2020 to 22.27% in December 2024. This suggests efficient management of operating expenses and an increase in operating income over the years.
The pretax margin has demonstrated a significant increase from 4.39% in March 2020 to 18.61% in December 2024. This indicates that the company has been able to control non-operating expenses and generate higher profits before taxes.
Lastly, the net profit margin has shown a positive trend, increasing from 3.59% in March 2020 to 15.55% in December 2024. This reflects the company's ability to improve its bottom line profitability after accounting for all expenses including taxes.
Overall, the improving profitability ratios of Howmet Aerospace Inc suggest effective cost management, revenue growth, and operational efficiency over the years, leading to enhanced profitability and value for its shareholders.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.73% | 14.55% | 13.32% | 12.36% | 11.54% | 10.79% | 9.29% | 8.91% | 8.31% | 7.85% | 8.19% | 7.79% | 7.32% | 7.94% | 6.65% | 5.08% | 6.70% | 8.48% | 10.69% | 5.74% |
| Return on assets (ROA) | 10.98% | 10.20% | 8.74% | 8.26% | 7.34% | 6.30% | 5.20% | 4.78% | 4.57% | 4.38% | 3.80% | 3.05% | 2.52% | 2.77% | 2.85% | 1.15% | 2.28% | 4.09% | 4.60% | 2.70% |
| Return on total capital | 34.37% | 32.31% | 31.63% | 31.03% | 29.55% | 27.79% | 24.93% | 23.48% | 23.19% | 23.40% | 20.20% | 18.80% | 17.27% | 20.45% | 19.76% | 15.54% | 21.40% | 25.42% | 32.47% | 19.92% |
| Return on equity (ROE) | 25.36% | 23.92% | 21.81% | 21.05% | 18.95% | 16.53% | 14.09% | 12.92% | 13.02% | 13.29% | 11.17% | 8.94% | 7.35% | 8.02% | 8.23% | 3.44% | 7.29% | 13.25% | 15.16% | 10.41% |
Based on the provided data, the profitability of Howmet Aerospace Inc can be analyzed through various key ratios:
1. Operating Return on Assets (Operating ROA): This ratio measures the operating income generated per dollar of assets. Howmet Aerospace Inc's Operating ROA has shown a positive trend, increasing from 5.74% as of March 31, 2020, to 15.73% as of December 31, 2024. This indicates that the company has been becoming more efficient in generating operating income from its assets over time.
2. Return on Assets (ROA): ROA represents the overall profitability of the company by showing how much profit it generates relative to its total assets. Howmet Aerospace Inc's ROA also demonstrates an upward trend, rising from 2.70% as of March 31, 2020, to 10.98% as of December 31, 2024. This suggests that the company has been able to generate more profit from its total assets as time has progressed.
3. Return on Total Capital: This metric assesses the return generated on all capital invested in the company. Howmet Aerospace Inc's Return on Total Capital has shown steady growth, increasing from 19.92% as of March 31, 2020, to 34.37% as of December 31, 2024. This signifies that the company has been effectively utilizing its total capital to generate higher returns for its stakeholders.
4. Return on Equity (ROE): ROE measures the profitability from the shareholders' perspective, indicating how much profit is generated relative to the shareholders' equity. Howmet Aerospace Inc's ROE has also demonstrated an increasing trend, climbing from 10.41% as of March 31, 2020, to 25.36% as of December 31, 2024. This indicates that the company has been delivering higher returns to its equity investors over the analyzed period.
In conclusion, the profitability ratios of Howmet Aerospace Inc have been progressively improving, showcasing efficient asset utilization, increased profitability per dollar invested, effective capital management, and enhanced returns for both total capital and equity investors.