Acadia Healthcare Company Inc (ACHC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 23.31% | 42.78% | 42.34% | 40.58% |
| Operating profit margin | 93.99% | 17.30% | 17.01% | 17.91% | 17.49% |
| Pretax margin | 10.84% | -0.87% | 14.33% | 11.92% | 8.79% |
| Net profit margin | 8.10% | -0.74% | 10.46% | 8.24% | 6.85% |
Based on the provided data, we can analyze the profitability ratios of Acadia Healthcare Company Inc over the years as follows:
1. Gross Profit Margin: The gross profit margin indicates the percentage of revenue that exceeds the cost of goods sold. Acadia Healthcare's gross profit margin has shown a generally increasing trend from 40.58% in 2020 to 100.00% in 2024. The significant increase in 2024 to 100.00% may be an anomaly and should be investigated further.
2. Operating Profit Margin: The operating profit margin represents the percentage of revenue that remains after deducting operating expenses. Acadia Healthcare's operating profit margin has been relatively stable, ranging from 17.01% in 2022 to a sharp increase of 93.99% in 2024. The significant increase in 2024 is noteworthy and may indicate effective cost management or other positive operational factors.
3. Pretax Margin: The pretax margin signifies the percentage of revenue remaining after accounting for all expenses except taxes. Acadia Healthcare's pretax margin has fluctuated significantly, with a negative margin of -0.87% in 2023. This suggests potential financial challenges or abnormalities in that particular year, which may require further investigation.
4. Net Profit Margin: The net profit margin reflects the percentage of revenue that translates into net income after all expenses, including taxes. Acadia Healthcare's net profit margin has varied, with a notable decrease to -0.74% in 2023, indicating a loss during that period. However, the margins in other years have shown a positive trend, reaching 8.10% in 2024, showcasing the company's ability to generate profits in most years.
Overall, while Acadia Healthcare has demonstrated improvements in some profitability ratios over the years, there are fluctuations and anomalies that warrant closer scrutiny to understand the underlying factors impacting the company's financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 49.76% | 9.45% | 8.90% | 8.69% | 5.63% |
| Return on assets (ROA) | 4.29% | -0.40% | 5.48% | 4.00% | 2.20% |
| Return on total capital | 14.91% | 2.04% | 15.78% | 14.01% | 18.00% |
| Return on equity (ROE) | 8.32% | -0.78% | 9.71% | 7.57% | 7.54% |
Acadia Healthcare Company Inc's profitability ratios show a mixed performance over the years.
- Operating return on assets (Operating ROA) has been steadily increasing from 5.63% in December 2020 to 49.76% in December 2024, indicating improving operational efficiency in utilizing its assets.
- Return on assets (ROA) experienced fluctuations, starting at 2.20% in December 2020, peaking at 5.48% in December 2022, and then decreasing to 4.29% in December 2024. The negative ROA of -0.40% in December 2023 may raise concerns about the company's asset management efficiency.
- Return on total capital fluctuated as well, with a high of 18.00% in December 2020, a low of 2.04% in December 2023, and a slight recovery to 14.91% in December 2024. This ratio reflects the company's ability to generate returns for both debt and equity providers.
- Return on equity (ROE) showed a similar trend, with a modest increase from 7.54% in December 2020 to 9.71% in December 2022, before dropping to -0.78% in December 2023 and recovering to 8.32% in December 2024. The negative ROE in 2023 signals potential issues in effectively utilizing shareholder equity.
In conclusion, while the increasing Operating ROA is a positive sign of operational efficiency, the fluctuating ROA, Return on total capital, and ROE suggest some challenges in achieving consistent profitability and managing assets and equity effectively over the period analyzed.