Hexcel Corporation (HXL)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	132,100	105,700	126,300	16,100	31,700
Revenue	US$ in thousands	1,903,000	1,758,000	1,541,500	1,286,400	1,460,600
Net profit margin		6.94%	6.01%	8.19%	1.25%	2.17%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $132,100K ÷ $1,903,000K
= 6.94%

The net profit margin, a key profitability ratio, measures the percentage of each dollar in revenue that translates into profit after all expenses are deducted. Analyzing Hexcel Corporation's net profit margin over the years reveals fluctuations in profitability.

In 2020, Hexcel Corporation had a net profit margin of 2.17%, indicating that for every dollar of revenue generated, the company retained about 2.17 cents as profit. However, in 2021, the net profit margin declined to 1.25%, signaling a decrease in profitability, possibly due to higher expenses or lower revenue.

The following year, 2022, marked a significant improvement in profitability with the net profit margin surging to 8.19%. This substantial increase suggests that Hexcel Corporation effectively managed its expenses or experienced a boost in revenue compared to the previous year.

In 2023 and 2024, the net profit margin remained relatively stable at 6.01% and 6.94%, respectively. This indicates that Hexcel Corporation maintained a steady level of profitability during these years.

Overall, the analysis of Hexcel Corporation's net profit margin highlights varying levels of profitability across the years, emphasizing the importance of closely monitoring expenses and revenue generation to sustain and enhance overall profitability in the long term.