Revenue Analysis
Total and Operating Revenue: CLH’s revenue has shown volatile growth over the past years. From 2023-06-30 to 2024-03-31, the total revenue grew from approximately $1.398 billion to $1.377 billion, experiencing slight fluctuations. Operating Revenue remained largely consistent with Total Revenue, indicating stable business operations.
Gross Profit Margins: The Gross Profit has seen an increase, moving from $375.873 million in 2023-03-31 to $405.625 million by 2023-12-31, then slightly decreasing to $405.625 million by 2024-03-31. This indicates improved efficiency in revenue generation over the analyzed periods.
Cost Management
Cost of Revenue: Cost of Revenue consistently increased from $931.514 million as of 2023-03-31 to $971.070 million by 2024-03-31, reflecting rising operational costs.
Operating Expense: Operating Expenses were relatively stable, ranging around $254.918 million in 2023-03-31 to $280.150 million by 2024-03-31.
Total Expenses: Total Expenses have increased from approximately $1.186 billion in 2023-03-31 to $1.251 billion by 2024-03-31, indicating a rise in overall spending.
Profitability Analysis
EBITDA: EBITDA ranges from $206.422 million in 2023-03-31 to $222.913 million by 2024-03-31, showing growth in earnings before interest, taxes, depreciation, and amortization.
Operating Income: Operating Income has shown a noticeable improvement from $120.955 million in 2023-03-31 to $125.475 million by 2024-03-31.
Pretax Income: Pretax Income grew from $98.077 million in 2023-03-31 to $95.795 million by 2024-03-31.
Net Income: Net Income shows significant growth, from $72.401 million in 2023-03-31 to $69.832 million by 2024-03-31.
Cash Flow Indicators
Reconciled Depreciation: The depreciation expense has been fairly stable, with an increase from $84.758 million in 2023-03-31 to $95.065 million by 2024-03-31.
Interest Expense: Interest Expense also increased slightly from $23.587 million in 2023-03-31 to $32.053 million by 2024-03-31, which could signal higher debt levels or rising interest rates.
Taxation
Tax Rate: The effective tax rate has seen changes, ranging from 26.1794% in 2023-03-31 to 27.1027% by 2024-03-31.
Tax Provision: Tax Provision increased from $25.676 million in 2023-03-31 to $25.963 million by 2024-03-31.
Tax Effect of Unusual Items: There have been minimal effects of unusual items on taxation, with figures staying mostly at $0.0 apart from a minor effect in 2023-12-31.
Shareholder Metrics
Diluted and Basic EPS: Earnings Per Share (EPS) saw growth from 1.33 diluted and 1.34 basic in 2023-03-31 to 1.29 both diluted and basic by 2024-03-31, indicating a reduction in profit per share over the period.
Average Shares: The number of average shares has remained steady around 54-55 million for both diluted and basic figures throughout the periods.
Net Income Available to Common Stockholders: Maintained a consistent level, mirroring the net income figures directly.
Conclusion
CLH has demonstrated growth in revenue and gross profit, though the increase in costs and expenses has impacted net earnings. A steady increase in operational income and EBITDA suggests strengthening core operations despite rising costs. Attention may be needed on managing interest expenses and effective tax rates to boost net income figures. Continuous monitoring of cost-efficiency and profitability metrics would benefit the company’s financial health.