Robert Half International Inc (RHI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 40.13% | 42.70% | 41.72% | 39.38% | 41.53% |
| Operating profit margin | 8.66% | 12.29% | 12.47% | 8.25% | 10.23% |
| Pretax margin | 8.99% | 12.38% | 12.44% | 8.26% | 10.29% |
| Net profit margin | 6.41% | 9.08% | 9.26% | 5.99% | 7.47% |
Robert Half Inc's profitability ratios have shown some fluctuation over the past five years. The gross profit margin has ranged from 39.39% to 42.75%, indicating the company's ability to generate profit from its revenue after accounting for the cost of goods sold. The declining trend from 2019 to 2023 suggests potential challenges in managing production or procurement costs relative to sales prices.
In terms of operating profit margin, there has been significant variability with a range of 6.76% to 13.47%. This ratio represents the efficiency of the company's core operations in generating profit before interest and taxes. The decrease from 2022 to 2023 indicates increased operating expenses or lower revenue relative to sales.
The pretax margin, measuring profitability before taxes, has fluctuated between 8.26% and 12.44%. The decrease in 2023 compared to the prior years suggests that the company's pre-tax profitability may have been impacted by higher tax expenses or lower pre-tax income.
Lastly, the net profit margin, which indicates the profitability after all expenses have been deducted, ranged from 5.99% to 9.09%. The downward trend from 2019 to 2023 could signal that the company's bottom line profitability has been under pressure, possibly indicating challenges in controlling costs or sustaining revenue growth.
Overall, while Robert Half Inc has maintained positive profitability margins, there are fluctuations in these ratios over the years, suggesting the need for close monitoring and potential strategic adjustments to improve overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.45% | 30.04% | 27.29% | 16.49% | 26.90% |
| Return on assets (ROA) | 13.66% | 22.19% | 20.28% | 11.98% | 19.66% |
| Return on total capital | 34.97% | 56.78% | 58.35% | 34.99% | 54.35% |
| Return on equity (ROE) | 25.89% | 41.94% | 43.35% | 25.41% | 39.73% |
Robert Half Inc has demonstrated a consistent performance in terms of profitability ratios over the past five years.
Operating return on assets (Operating ROA) has fluctuated from 13.50% in 2020 to 32.89% in 2022, before settling at 15.43% in 2023. This ratio indicates how efficiently the company is generating operating income from its assets.
Return on assets (ROA) has shown a similar trend, ranging from 11.98% in 2020 to 22.19% in 2022, with a value of 13.66% in 2023. This ratio measures the company's overall ability to generate profits from its total assets.
Return on total capital has also been volatile, with a low of 28.65% in 2020 and a high of 62.16% in 2022, before ending at 29.25% in 2023. This ratio reflects how well the company is utilizing its total capital to generate returns.
Return on equity (ROE) has exhibited a similar pattern, with values ranging from 25.41% in 2019 to 43.35% in 2021, and settling at 25.89% in 2023. ROE indicates the profitability of the company in relation to the shareholders' equity.
Overall, the profitability ratios of Robert Half Inc suggest that the company has been effectively utilizing its assets, capital, and equity to generate profits, albeit with some fluctuations in performance over the years.