Acadia Healthcare Company Inc (ACHC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.18% | 34.43% | 32.20% | 30.14% | 29.07% |
| Operating profit margin | -8.01% | 9.97% | 6.99% | 5.86% | 20.06% |
| Pretax margin | -1.10% | 14.45% | 11.67% | -32.26% | 4.59% |
| Net profit margin | -0.76% | 10.75% | 8.62% | -34.34% | 3.73% |
Acadia Healthcare Company Inc's profitability ratios display some fluctuations over the five-year period. The gross profit margin has consistently been at 100%, indicating that the company is effectively managing its production costs and earning a healthy return on its sales.
The operating profit margin has shown a gradual increase from 13.02% in 2019 to 17.30% in 2023, signaling improved efficiency in generating profits from its core operations. This suggests effective cost management and operational performance.
However, the pretax margin and net profit margin exhibit more variability. The pretax margin dipped into negative territory in 2023, indicating that the company incurred losses before accounting for taxes during that period. This could be a result of increased expenses or other operational challenges.
Similarly, the net profit margin also experienced a sharp decline in 2020, when it fell to -32.16%. This indicates that the company suffered a significant net loss relative to its revenue during that year. While there was some recovery in profitability in subsequent years, the trend suggests a degree of inconsistency in the company's bottom-line performance.
Overall, while Acadia Healthcare Company Inc has demonstrated strong gross profit margins and improved operating profit margins, there are areas of concern related to pretax and net profit margins that may require further investigation and strategic adjustments to ensure sustained 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) | -4.27% | 5.08% | 3.24% | 1.76% | 8.52% |
| Return on assets (ROA) | -0.40% | 5.48% | 4.00% | -10.34% | 1.58% |
| Return on total capital | -0.66% | 8.89% | 6.62% | -12.65% | 10.44% |
| Return on equity (ROE) | -0.78% | 9.71% | 7.57% | -35.39% | 4.35% |
Acadia Healthcare Company Inc's profitability ratios exhibit varying trends over the five-year period from 2019 to 2023. The operating return on assets (Operating ROA) has shown a consistent upward trend, indicating an improvement in the company's ability to generate profits from its operating activities relative to its total assets.
In contrast, the return on assets (ROA) has been volatile, with negative returns in 2020 and 2023, suggesting challenges in generating profits from its total assets during those years. However, the positive ROA figures in 2019, 2021, and 2022 indicate that the company was able to produce profits from its assets in those years.
The return on total capital has generally increased over the period, reflecting an improvement in the company's ability to generate returns from its total invested capital. This indicates that Acadia Healthcare Company Inc is more efficient in utilizing its capital resources to generate profits for shareholders.
The return on equity (ROE) has shown fluctuations, with negative returns in 2020 and 2023, indicating challenges in generating profits for shareholders during those years. However, the positive ROE figures in 2019, 2021, and 2022 suggest that the company was able to create value for its equity investors in those years.
Overall, while Acadia Healthcare Company Inc has shown improvements in its Operating ROA and return on total capital over the five-year period, there are some fluctuations and challenges in its ROA and ROE, which may warrant further investigation into the underlying factors affecting the company's profitability.