Earnings Analysis for HTZ: 2021 to 2024
Revenue Analysis
Over the studied period, HTZ experienced fluctuations in Total Revenue, Operating Revenue, and Gross Profit.
In 2024, Total and Operating Revenue amounted to $2,080,000,000, with a Gross Profit of -$11,000,000, indicating a rare instance of negative gross profit due to high costs. Contrastingly, 2023 saw Total Revenue ranging from $2,184,000,000 in December to $2,703,000,000 in September with Gross Profits peaking at $680,000,000 in September, displaying better management of cost of goods sold relative to revenue generation.
Cost Management
Cost management shows variable efficacy across the period. The Cost of Revenue in 2024 was notably high at $2,091,000,000 relative to its revenue. For 2023, while costs remained high, the Gross Profit figures in June and September suggest moments of effective cost management. Total Expenses followed a similar volatile trajectory, hitting a peak at $2,363,000,000 in December 2023.
Profitability Analysis
EBITDA was highest in September 2023 at $1,423,000,000 but dropped to $737,000,000 by March 2024. Operating Income and Pretax Income were similarly unstable, turning negative in numerous quarters. Net Income highlighted stark contrasts, from negative values such as -$348,000,000 in December 2023, improving significantly to positive figures up to $629,000,000 in September 2023.
Cash Flow Indicators
Reconciled Depreciation and Interest Expense are substantial, with Depreciation peaking in September 2023 at $981,000,000 which reflects significant investment in asset depreciation. Interest Expense remained a consistent burden, ranging around $215,000,000 to $218,000,000 through multiple quarters.
Taxation
Taxation has been notably variable. The Tax Provision was highest in March 2023 at -$134,000,000 and the overall Tax Rate saw fluctuations, impacting the final tax effects considerably across the periods, with varying impacts on the profitability.
Shareholder Metrics
Diluted and Basic EPS mirrored the income fluctuations with negative values in some quarters like -$1.14 in December 2023, and high positive values such as 2.02 in September 2023. Average Shares hovered around 315,000,000 to 327,000,000, showing slight variance. Net Income Available to Common Stockholders peaked at $629,000,000 in September 2023, reflecting the highest profitability period.
Conclusion
The financial performance of HTZ over the last few years has been highly volatile. The firm has shown capabilities for high profitability during optimal circumstances but has also registered significant losses, particularly noted in the stark contrast between September 2023 and March 2024. On moving forward, HTZ would benefit from stringent cost management strategies, efficient tax handling, and continuous monitoring of cash flows to mitigate Interest Expenses and improve shareholder returns.
Appendices
Supporting data tables and calculations used for the analysis are derived strictly from the provided financial figures over the fiscal periods from 2023 to 2024.