Adapthealth Corp (AHCO)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	263,732	-598,401	190,411	225,605	71,346
Revenue	US$ in thousands	3,259,430	3,071,300	2,862,560	2,350,980	1,023,920
Operating profit margin		8.09%	-19.48%	6.65%	9.60%	6.97%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $263,732K ÷ $3,259,430K
= 8.09%

Adapthealth Corp's operating profit margin has displayed varying trends over the past five years. The margin increased from 6.97% as of December 31, 2020, to 9.60% by December 31, 2021, indicating an improvement in operational efficiency and profitability. However, by December 31, 2022, the operating profit margin decreased to 6.65%. This decline may suggest challenges in managing operating costs or generating sufficient revenue during that period.

The most significant change occurred by December 31, 2023, when the operating profit margin plummeted to -19.48%. A negative operating profit margin is a concerning metric as it implies the company's operating expenses surpass its operating income, potentially leading to financial losses. It is essential for Adapthealth Corp to closely assess and address the factors contributing to this sharp decline.

By December 31, 2024, the operating profit margin had improved to 8.09%, indicating a recovery from the significant negative margin in the previous year. This bounce-back could be attributed to strategic cost-cutting measures or improved revenue generation strategies implemented by the company.

Overall, the analysis of Adapthealth Corp's operating profit margin highlights the company's fluctuating performance in managing its operational costs and income generation over the specified period. Continued monitoring and proactive management of operational efficiency will be crucial for sustaining and enhancing profitability in the future.