Hexcel Corporation (HXL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.69% | 24.64% | 23.17% | 19.44% | 16.41% |
| Operating profit margin | 9.78% | 12.25% | 11.37% | 4.03% | 0.97% |
| Pretax margin | 8.14% | 6.70% | 10.24% | 1.71% | -2.01% |
| Net profit margin | 6.94% | 6.01% | 8.19% | 1.25% | 2.17% |
Hexcel Corporation has shown a steady improvement in its profitability ratios over the years. The gross profit margin has increased from 16.41% in 2020 to 24.69% in 2024, indicating the company's ability to efficiently manage its production costs and generate higher margins on sales.
The operating profit margin has also shown a positive trend, rising from 0.97% in 2020 to 9.78% in 2024. This improvement reflects Hexcel's effectiveness in controlling its operating expenses and achieving better profitability from its core business operations.
The pretax margin demonstrates a similar upward trajectory, increasing from -2.01% in 2020 to 8.14% in 2024. This indicates that Hexcel has effectively managed its pre-tax income relative to its total revenue over the years, resulting in stronger profitability before accounting for taxes.
Moreover, the net profit margin has seen growth, climbing from 2.17% in 2020 to 6.94% in 2024. This metric reflects the company's ability to generate higher profits after accounting for all expenses, including taxes, and indicates improved overall financial health and performance.
Overall, Hexcel Corporation's profitability ratios have shown positive momentum, with consistent improvements in gross, operating, pretax, and net profit margins over the years, suggesting effective cost management strategies and enhanced profitability across its operations.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.83% | 7.38% | 6.17% | 1.84% | 0.48% |
| Return on assets (ROA) | 4.85% | 3.62% | 4.45% | 0.57% | 1.09% |
| Return on total capital | 8.35% | 8.91% | 7.69% | 2.24% | 0.51% |
| Return on equity (ROE) | 8.65% | 6.16% | 8.13% | 1.08% | 2.10% |
The profitability ratios of Hexcel Corporation have shown an improving trend over the 5-year period from 2020 to 2024.
1. Operating Return on Assets (Operating ROA) has increased steadily from 0.48% in 2020 to 6.83% in 2024. This ratio indicates the company's ability to generate profits from its operating assets.
2. Return on Assets (ROA) experienced fluctuations but generally improved from 1.09% in 2020 to 4.85% in 2024. ROA measures how efficiently the company is utilizing its assets to generate earnings.
3. Return on Total Capital increased significantly from 0.51% in 2020 to 8.35% in 2024. This ratio reflects the return the company is generating on both debt and equity investments.
4. Return on Equity (ROE) also displayed an upward trajectory, rising from 2.10% in 2020 to 8.65% in 2024. ROE indicates how well the company is using shareholders' equity to generate profits.
Overall, the improving trend in profitability ratios indicates that Hexcel Corporation's management has been effectively utilizing its assets and capital to generate increasing returns for its shareholders over the analyzed period.