Hyliion Holdings Corp.'s (HYLN) cost management has been characterized by significant challenges, primarily reflected in the negative margins and profitability metrics reported in recent quarters12:
- Gross Margin and Net Margin: The company's gross margin was reported at 6.23% and net margin at -3449.17% as of December 31, 20241. Such figures indicate that while the company is generating some revenue, the costs are significantly eating into any potential profits.
- Operating Margin: The operating margin for HYLN is -3451.49% as of December 31, 20241. This is a stark indication of the company's operational cost management challenges, suggesting that the costs associated with operations far exceed any revenue generated.
- Return on Assets (ROA) and Return on Equity (ROE): The ROA is -21.73% and ROE is -18.9% as of December 31, 20243. Negative ROA and ROE values imply that the company is not only unprofitable but also generating losses relative to its assets and shareholders' equity.
- Earnings Per Share (EPS): There is no available data on the EPS for the most recent quarter ending on December 31, 20244. However, given the company's negative margins and losses reported elsewhere, it is likely that the EPS is also negative.
- Cash Burn Rate and Operating Expenses: HYLN has a history of significant operating expenses, with a cash burn rate of $25.4 million per quarter reported in the industry analysis2. This high cash burn rate, combined with negative margins, underscores the company's pressing need for capital to sustain operations.
In summary, HYLN's cost management has been severely impacted, leading to negative margins, significant losses, and a high cash burn rate. The company's financial health is currently under strain due to these factors.
5/9/2025 01:30am
