Hexcel Corporation (HXL)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	105,700	126,300	16,100	31,700	306,600
Revenue	US$ in thousands	1,758,000	1,541,500	1,286,400	1,460,600	2,310,200
Net profit margin		6.01%	8.19%	1.25%	2.17%	13.27%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $105,700K ÷ $1,758,000K
= 6.01%

The net profit margin of Hexcel Corp. has displayed fluctuations over the past five years. In 2019, the company achieved a high net profit margin of 13.02%, indicating efficient cost management and strong revenue generation relative to its total revenue. This was followed by a decrease in 2020 to 2.11%, reflecting a decrease in profitability potentially influenced by external factors such as economic downturn or increased expenses.

In 2021, Hexcel Corp. experienced a further decline in net profit margin to 1.22%, signaling a continued challenge in maintaining profitability. However, there was a notable improvement in 2022 with a net profit margin of 8.01%, suggesting the company implemented corrective measures to enhance its financial performance.

By the end of 2023, Hexcel Corp.'s net profit margin stood at 5.91%, reflecting a moderate decrease from the previous year. This implies that although the company made progress in profitability, there may still be potential areas for further improvement to sustain or enhance its financial health. Monitoring and analyzing the trend of net profit margins can provide valuable insights into the company's operational efficiency and overall financial well-being.