Hexcel Corporation (HXL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.64% | 23.17% | 19.44% | 16.41% | 27.72% |
| Operating profit margin | 12.25% | 11.37% | 4.03% | 0.97% | 18.41% |
| Pretax margin | 6.70% | 10.24% | 1.71% | -2.01% | 16.60% |
| Net profit margin | 6.01% | 8.19% | 1.25% | 2.17% | 13.27% |
Hexcel Corp.'s profitability ratios have shown variability over the past five years. The gross profit margin has improved steadily from 15.95% in 2020 to 24.21% in 2023, indicating efficient cost management and potentially higher pricing power. Operating profit margin has also shown a positive trend, increasing from 4.79% in 2020 to 12.03% in 2023, reflecting better operational efficiency.
However, there are fluctuations in the pretax and net profit margins. The pretax margin fluctuated from a negative figure in 2020 to 6.58% in 2023, signaling improvements in income generation before taxes. The net profit margin decreased from 13.02% in 2019 to 5.91% in 2023, suggesting that the company's cost structure may have impacted its bottom line profitability.
In conclusion, while Hexcel Corp. has shown improvements in its gross and operating profit margins, it may need to focus on sustaining or enhancing its net profit margins in the future through effective cost control measures.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.38% | 6.17% | 1.84% | 0.48% | 13.59% |
| Return on assets (ROA) | 3.62% | 4.45% | 0.57% | 1.09% | 9.80% |
| Return on total capital | 8.91% | 7.69% | 2.24% | 0.51% | 17.18% |
| Return on equity (ROE) | 6.16% | 8.13% | 1.08% | 2.10% | 21.20% |
Hexcel Corp.'s profitability ratios show fluctuations over the past five years. Operating return on assets (Operating ROA) increased from 2.47% in 2020 to 7.38% in 2023, indicating an improvement in the company's operational efficiency and profitability. Return on assets (ROA) had a mixed trend, decreasing from 9.80% in 2019 to 0.57% in 2021 before slightly recovering to 3.62% in 2023.
Return on total capital increased from 2.89% in 2020 to 9.25% in 2023, demonstrating the company's ability to generate earnings relative to its total capital employed. Return on equity (ROE) declined from 21.20% in 2019 to 1.08% in 2021, before rebounding to 6.16% in 2023, indicating fluctuations in how effectively the company generates profits from shareholders' equity.
Overall, Hexcel Corp.'s profitability ratios reflect varying performance levels over the past five years, with improvements seen in certain metrics such as Operating ROA and Return on total capital, while others like ROE have shown more volatile trends. Further analysis of the company's operations and financial strategies would be needed to understand the drivers behind these fluctuations in profitability ratios.