Adapthealth Corp (AHCO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.85% | 11.42% | 10.81% | 14.55% | 12.24% |
| Operating profit margin | 8.09% | -19.48% | 6.65% | 9.60% | 6.97% |
| Pretax margin | 4.04% | -23.70% | 3.29% | 8.04% | -16.95% |
| Net profit margin | 2.77% | -22.10% | 2.42% | 6.64% | -15.79% |
Adapthealth Corp's profitability ratios indicate mixed performance over the past five years. The gross profit margin has shown improvement from 12.24% in 2020 to 20.85% in 2024, indicating the company's ability to generate profits from its core operations.
However, the operating profit margin fluctuated, with notable declines in 2023, where it was negative at -19.48%. This suggests that the company had difficulties controlling its operating costs during that period.
Similarly, the pretax margin and net profit margin also experienced significant fluctuations. Adapthealth Corp's pretax margin was negative in 2020 and 2023, reflecting challenges in generating pre-tax profits. The net profit margin showed a similar trend, with a negative margin in 2020 and 2023.
Overall, Adapthealth Corp's profitability ratios demonstrate a need for improved cost management and efficiency in operations to ensure consistent and sustainable profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.88% | -13.27% | 3.65% | 4.30% | 3.93% |
| Return on assets (ROA) | 2.02% | -15.06% | 1.33% | 2.97% | -8.91% |
| Return on total capital | 7.46% | -16.82% | 4.73% | 6.69% | -11.68% |
| Return on equity (ROE) | 5.76% | -46.55% | 3.22% | 7.57% | -45.54% |
Adapthealth Corp's profitability ratios show varying trends over the years.
- Operating return on assets (Operating ROA) increased from 3.93% in 2020 to 4.30% in 2021 before decreasing to 3.65% in 2022. However, there was a significant decline to -13.27% in 2023, followed by a rebound to 5.88% in 2024.
- Return on assets (ROA) was negative at -8.91% in 2020, improved to 2.97% in 2021, but dropped to 1.33% in 2022. It then deteriorated further to -15.06% in 2023 before recovering slightly to 2.02% in 2024.
- Return on total capital was also negative at -11.68% in 2020, turned positive at 6.69% in 2021, and slightly decreased to 4.73% in 2022. However, there was a significant decline to -16.82% in 2023, followed by an increase to 7.46% in 2024.
- Return on equity (ROE) showed a negative performance at -45.54% in 2020, improved to 7.57% in 2021, and then decreased to 3.22% in 2022. There was another significant drop to -46.55% in 2023, but it recovered to 5.76% in 2024.
Overall, the company experienced fluctuations in its profitability ratios, with some years showing improvements and others showing declines. The management of Adapthealth Corp may need to focus on sustaining positive trends and addressing challenges to enhance overall profitability.