Hexcel Corporation (HXL)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 24.64% | 24.88% | 25.12% | 24.75% | 23.17% | 22.22% | 21.60% | 20.74% | 19.44% | 17.17% | 13.42% | 12.24% | 16.31% | 20.47% | 24.73% | 27.27% | 27.59% | 27.80% | 27.53% | 27.18% |
| Operating profit margin | 12.25% | 12.07% | 12.30% | 12.93% | 11.37% | 10.71% | 9.69% | 6.73% | 4.03% | 0.68% | -4.39% | -4.98% | 0.96% | 7.59% | 13.81% | 17.23% | 18.32% | 18.28% | 17.94% | 17.58% |
| Pretax margin | 6.70% | 11.06% | 11.17% | 11.80% | 10.24% | 9.50% | 8.36% | 5.06% | 1.96% | -2.67% | -7.96% | -8.46% | -1.99% | 5.18% | 11.65% | 15.31% | 16.52% | 16.50% | 16.27% | 15.99% |
| Net profit margin | 6.01% | 9.33% | 8.93% | 9.40% | 8.19% | 7.35% | 6.27% | 3.50% | 1.25% | -1.80% | -1.82% | -1.99% | 2.16% | 7.15% | 9.64% | 12.29% | 13.21% | 12.92% | 13.09% | 12.89% |
Hexcel Corp. has shown improvement in its profitability ratios over the quarters. The gross profit margin has been relatively stable, ranging from 24.20% to 24.58%, indicating efficient cost management and pricing strategies. The operating profit margin has also exhibited a positive trend, increasing from 6.71% in Q1 2022 to 12.53% in Q2 2023, reflecting better operational efficiency and control over operating expenses.
The pretax margin has shown volatility but overall improvement, with the highest margin of 11.54% in Q1 2023. This suggests effective management of non-operating expenses and potential tax optimization. Furthermore, the net profit margin has consistently increased from 3.41% in Q1 2022 to 9.14% in Q3 2023, demonstrating a solid performance in converting revenue into net income.
These profitability ratios collectively indicate that Hexcel Corp. has been successful in enhancing its profitability through efficient cost control, improved operational performance, and effective management of tax and financial expenses.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.38% | 7.31% | 7.03% | 7.15% | 6.17% | 5.68% | 4.95% | 3.23% | 1.84% | 0.29% | -1.78% | -2.14% | 0.48% | 4.44% | 8.67% | 11.30% | 13.59% | 13.43% | 12.84% | 12.37% |
| Return on assets (ROA) | 3.62% | 5.65% | 5.10% | 5.20% | 4.45% | 3.90% | 3.21% | 1.68% | 0.57% | -0.77% | -0.74% | -0.85% | 1.09% | 4.18% | 6.05% | 8.06% | 9.80% | 9.49% | 9.37% | 9.07% |
| Return on total capital | 8.91% | 8.67% | 8.40% | 8.70% | 7.69% | 7.03% | 6.09% | 3.93% | 2.24% | 0.27% | -2.23% | -2.66% | 0.51% | 5.32% | 10.36% | 13.89% | 17.18% | 16.89% | 16.29% | 15.71% |
| Return on equity (ROE) | 6.16% | 9.77% | 8.94% | 9.32% | 8.13% | 7.49% | 6.11% | 3.22% | 1.08% | -1.49% | -1.43% | -1.66% | 2.10% | 8.29% | 13.56% | 19.48% | 21.20% | 21.12% | 20.75% | 20.93% |
Hexcel Corp.'s profitability ratios show a generally positive trend over the past eight quarters.
- Operating return on assets (Operating ROA) has been steadily increasing, indicating that the company is generating more operating income per dollar of assets employed to support its operations. This reflects efficiency in asset utilization and operational performance.
- Return on assets (ROA) fluctuates over the quarters but generally remains at a respectable level. This metric evaluates the overall profitability of the company relative to its total assets, and the increasing trend suggests improved asset management and earnings generation.
- Return on total capital has also shown a positive trend, indicating that the company is efficiently generating returns from both equity and debt financing. This metric considers the total capital structure of the company, and the increasing trend suggests effective capital allocation and improved financial performance.
- Return on equity (ROE) has been on the rise, showcasing an improvement in the company's ability to generate profits from shareholder equity. This indicates that the company is effectively utilizing shareholders' investments to generate returns, thus enhancing shareholder value.
Overall, Hexcel Corp.'s profitability ratios demonstrate a trend of improvement, indicating that the company is effectively managing its assets, capital, and equity to generate increasing profitability over the quarters.