Addus HomeCare Corporation (ADUS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.31% | 32.31% | 31.77% | 31.39% | 29.67% |
| Operating profit margin | 8.85% | 8.65% | 7.29% | 7.67% | 5.84% |
| Pretax margin | 8.56% | 7.73% | 6.38% | 7.03% | 5.50% |
| Net profit margin | 6.34% | 5.94% | 4.88% | 5.25% | 4.35% |
The profitability ratios of Addus HomeCare Corporation have shown a positive trend over the past five years. The gross profit margin has steadily increased from 29.67% in December 2020 to 32.31% in December 2024, indicating an improvement in the efficiency of the company's production and pricing strategies.
Similarly, the operating profit margin has also shown a consistent growth from 5.84% in December 2020 to 8.85% in December 2024. This suggests that the company has been effectively managing its operating expenses and generating a higher profit from its core business operations.
The pretax margin, which indicates the percentage of revenue remaining after accounting for all expenses except taxes, has increased from 5.50% in December 2020 to 8.56% in December 2024. This upward trend signifies that Addus HomeCare Corporation has been successful in controlling its costs and improving its overall profitability before tax obligations.
Finally, the net profit margin, reflecting the percentage of revenue that translates into net income, has also experienced growth from 4.35% in December 2020 to 6.34% in December 2024. This indicates that the company has been efficient in managing its tax expenses and other financial obligations, resulting in an increase in its bottom line profitability.
Overall, the improving trend in Addus HomeCare Corporation's profitability ratios over the past five years demonstrates the company's ability to enhance its operational efficiency and drive sustainable growth in its 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) | 7.27% | 8.88% | 7.33% | 6.96% | 4.99% |
| Return on assets (ROA) | 5.21% | 6.10% | 4.91% | 4.76% | 3.71% |
| Return on total capital | 8.64% | 11.13% | 9.03% | 8.32% | 6.33% |
| Return on equity (ROE) | 7.58% | 8.85% | 7.26% | 7.86% | 6.39% |
Addus HomeCare Corporation has shown improvement in its profitability ratios over the years.
1. Operating Return on Assets (Operating ROA): The company's Operating ROA has increased steadily from 4.99% in 2020 to 7.27% in 2024. This indicates that the company is efficiently generating operating profits relative to its total assets.
2. Return on Assets (ROA): The ROA has also displayed a positive trend, rising from 3.71% in 2020 to 5.21% in 2024. This shows that Addus HomeCare Corporation is effectively utilizing its assets to generate profits for its shareholders.
3. Return on Total Capital: The Return on Total Capital has consistently increased from 6.33% in 2020 to 8.64% in 2024. This ratio indicates the company's ability to generate profits from both equity and debt investments.
4. Return on Equity (ROE): The ROE has maintained a relatively stable performance, ranging from 6.39% in 2020 to 7.58% in 2024. This shows the profitability of the company in relation to shareholders' equity.
Overall, the improvement in profitability ratios reflects positively on Addus HomeCare Corporation's ability to efficiently utilize its assets and capital to generate profits over the years.