AMN Healthcare Services Inc (AMN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.81% | 32.98% | 32.74% | 32.87% | 33.08% |
| Operating profit margin | -3.44% | 8.93% | 12.34% | 12.00% | 6.24% |
| Pretax margin | -5.78% | 7.50% | 11.57% | 11.14% | 3.82% |
| Net profit margin | -4.93% | 5.56% | 8.47% | 8.22% | 2.95% |
The Gross Profit Margin for AMN Healthcare Services Inc has shown a slight decline from 33.08% in December 2020 to 30.81% in December 2024, indicating a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
The Operating Profit Margin improved significantly from 6.24% in December 2020 to 12.34% in December 2022, before declining to -3.44% in December 2024. This suggests that the company's ability to generate profits from its core operations improved over the period but faced challenges in the most recent year.
The Pretax Margin followed a similar trend, increasing from 3.82% in December 2020 to 11.57% in December 2022, then dropping to -5.78% in December 2024. This indicates that the company's profitability before accounting for taxes improved but turned negative in the latest year.
The Net Profit Margin also exhibited a positive trend from 2.95% in December 2020 to 8.47% in December 2022 but fell to -4.93% in December 2024, showing a decline in the percentage of revenue converted to net income after considering all expenses.
Overall, AMN Healthcare's profitability ratios reflect a mixed performance over the analyzed period, with improvements in profitability metrics up to 2022 followed by a significant decline in profitability in 2024, as indicated by the negative margins in the most recent year.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -4.25% | 11.57% | 22.40% | 15.26% | 6.34% |
| Return on assets (ROA) | -6.08% | 7.20% | 15.37% | 10.45% | 3.00% |
| Return on total capital | 0.00% | 40.71% | 62.00% | 41.13% | 18.21% |
| Return on equity (ROE) | -20.80% | 25.34% | 42.55% | 28.17% | 8.62% |
AMN Healthcare Services Inc's profitability ratios reflect varying performance over the years.
- Operating Return on Assets (Operating ROA): AMN's Operating ROA has shown an improvement from 6.34% in 2020 to 22.40% in 2022, indicating efficient utilization of assets to generate operating income. However, there was a decline to 11.57% in 2023 and a significant drop to -4.25% in 2024, pointing towards potential operational challenges.
- Return on Assets (ROA): The company's ROA also followed a similar pattern, with a positive trend from 3.00% in 2020 to 15.37% in 2022. However, there was a decrease to 7.20% in 2023 and a notable downturn to -6.08% in 2024, suggesting that the company may be experiencing difficulties in generating profits from its assets.
- Return on Total Capital: AMN's Return on Total Capital surged significantly from 18.21% in 2020 to 62.00% in 2022, indicating strong returns relative to the total capital employed. However, this ratio dropped to 40.71% in 2023 and reached 0.00% in 2024, implying potential challenges in utilizing total capital effectively to generate returns.
- Return on Equity (ROE): The ROE also displayed a mixed performance, increasing from 8.62% in 2020 to 42.55% in 2022, showcasing the ability to generate higher returns for shareholders. Nevertheless, the metric declined to 25.34% in 2023 and fell significantly to -20.80% in 2024, highlighting potential issues in maximizing shareholder value.
In summary, while AMN Healthcare Services Inc has demonstrated strong profitability metrics in certain years, the declining trends in some ratios, especially in 2024, indicate potential challenges that require further investigation and management attention to sustain profitability and value creation for stakeholders.