Robert Half International Inc (RHI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.77% | 40.13% | 42.70% | 41.72% | 39.38% |
| Operating profit margin | 5.81% | 8.66% | 12.29% | 12.47% | 8.25% |
| Pretax margin | 6.17% | 8.99% | 12.38% | 12.44% | 8.26% |
| Net profit margin | 4.34% | 6.41% | 9.08% | 9.26% | 5.99% |
Robert Half International Inc has shown an improving trend in its gross profit margin over the years, increasing from 39.38% in 2020 to 42.70% in 2022. However, there was a slight dip in 2023 to 40.13% before decreasing further to 38.77% in 2024.
In terms of operating profit margin, the company demonstrated significant growth from 8.25% in 2020 to 12.47% in 2021 and 12.29% in 2022. Nonetheless, there was a decline in the following years, with 8.66% in 2023 and a notable decrease to 5.81% in 2024.
Similarly, the pretax margin displayed positive growth from 8.26% in 2020 to 12.44% in 2021 and 12.38% in 2022. However, the trend reversed in 2023 and 2024, dropping to 8.99% and 6.17%, respectively.
The net profit margin also exhibited growth from 5.99% in 2020 to 9.26% in 2021 and 9.08% in 2022. Nevertheless, there was a decline in profitability in the subsequent years, down to 6.41% in 2023 and a significant decrease to 4.34% in 2024.
Overall, while Robert Half International Inc initially showed strong profitability improvements, there was a general decline in profitability margins in the latter years analyzed, which may require further examination to identify underlying causes and potential areas for improvement.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.80% | 18.45% | 30.04% | 27.29% | 16.49% |
| Return on assets (ROA) | 8.81% | 13.66% | 22.19% | 20.28% | 11.98% |
| Return on total capital | 24.44% | 34.97% | 56.78% | 58.35% | 34.99% |
| Return on equity (ROE) | 18.26% | 25.89% | 41.94% | 43.35% | 25.41% |
Based on the provided data, here is a comprehensive analysis of Robert Half International Inc's profitability ratios:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA represents the company's operating income generated as a percentage of its total assets. Robert Half International Inc's Operating ROA has been consistently increasing over the years, starting at 16.49% in 2020 and reaching 30.04% in 2022, demonstrating the company's ability to generate higher operating income relative to its asset base.
2. Return on Assets (ROA):
- The ROA indicates the company's overall profitability by measuring how efficiently it utilizes its assets to generate profits. Robert Half International Inc's ROA has also shown an upward trend, increasing from 11.98% in 2020 to 22.19% in 2022. This indicates that the company has been effectively generating profits from its assets.
3. Return on Total Capital:
- The Return on Total Capital ratio measures the company's ability to generate returns for both equity and debt holders. Robert Half International Inc's Return on Total Capital has fluctuated over the years but generally remained at a healthy level, with a significant increase from 34.99% in 2020 to 58.35% in 2021. This indicates that the company efficiently uses its total capital to generate returns for its investors.
4. Return on Equity (ROE):
- The ROE shows the company's profitability from the perspective of its shareholders. Robert Half International Inc's ROE has also depicted an increasing trend from 25.41% in 2020 to 41.94% in 2022. This shows that the company has been able to deliver higher returns to its shareholders over the years.
Overall, based on the profitability ratios analyzed, Robert Half International Inc has demonstrated strong profitability and effective utilization of its assets and capital to generate returns for both investors and shareholders.