Adapthealth Corp (AHCO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 11.42% | 10.81% | 14.55% | 12.24% | 9.80% |
| Operating profit margin | -19.48% | 6.65% | 9.60% | 6.97% | 6.02% |
| Pretax margin | -23.70% | 3.29% | 8.04% | -16.95% | -4.22% |
| Net profit margin | -22.10% | 2.42% | 6.64% | -15.79% | -4.37% |
AdaptHealth Corp's profitability ratios have exhibited fluctuating trends over the past five years.
- The gross profit margin has shown some variability, ranging from 14.05% to 18.15%. In 2023, it stood at 14.99%, indicating that the company retains 14.99% of each dollar of sales after accounting for the cost of goods sold.
- The operating profit margin has also shown variability, with values ranging from 5.40% to 8.76%. In 2023, it increased to 7.26%, implying that the company generated 7.26 cents of operating income for every dollar of sales.
- The pretax margin experienced significant fluctuations over the period, with negative values recorded in 2020 and 2023. In 2023, the pretax margin was -22.62%, indicating that the company incurred a loss of 22.62 cents for every dollar of revenue before taxes.
- The net profit margin also demonstrated fluctuations, from -15.30% to 5.78%. In 2023, the net profit margin was -21.21%, reflecting a loss of 21.21 cents for each dollar in revenue after accounting for all expenses.
Overall, AdaptHealth Corp's profitability ratios in 2023 indicate a decrease in profitability compared to the previous year, with both pretax and net profit margins showing negative values, suggesting financial challenges that the company may be facing.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -13.27% | 3.65% | 4.30% | 3.93% | 5.38% |
| Return on assets (ROA) | -15.06% | 1.33% | 2.97% | -8.91% | -3.90% |
| Return on total capital | -16.82% | 4.73% | 6.69% | -11.68% | 4.91% |
| Return on equity (ROE) | -46.55% | 3.22% | 7.57% | -45.54% | — |
AdaptHealth Corp's profitability ratios reflect fluctuations over the past five years. The operating return on assets (Operating ROA) has shown improvement, reaching 5.15% in 2023 from 3.65% in 2022. This indicates that the company is generating more operating income per dollar of assets.
However, the overall return on assets (ROA) has been negative in recent years, particularly standing at -15.06% in 2023. This suggests that the company's net income generated from its assets has been insufficient to cover its total assets.
Return on total capital has shown a general increasing trend, reaching 6.39% in 2023, indicating that the company is becoming more efficient in generating returns from its total capital employed.
Return on equity (ROE) has been volatile, with a significant improvement in 2023 to -46.55% from -45.54% in the previous year. ROE being negative suggests that the company has not been profitable for equity holders. Further context is needed to understand the reason behind the negative ROE.
Overall, AdaptHealth Corp's profitability ratios highlight a mixed performance, with improvements in operating efficiency but challenges in generating positive returns for shareholders.