Astrana Health Inc (ASTH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.34% | 15.50% | 17.43% | 22.97% | 5.86% |
| Operating profit margin | 4.39% | 6.10% | 9.11% | 12.69% | 1.64% |
| Pretax margin | 3.97% | 6.48% | 7.57% | 10.05% | 2.40% |
| Net profit margin | 2.12% | 4.38% | 3.95% | 8.91% | -6.42% |
Based on the provided data, Astrana Health Inc's profitability ratios demonstrate a mixed performance over the period from December 31, 2020, to December 31, 2024.
1. Gross Profit Margin:
- The gross profit margin has improved significantly from 5.86% in December 2020 to 22.97% in December 2021. However, it declined in the following years, reaching 13.34% by December 2024.
2. Operating Profit Margin:
- The operating profit margin also shows an increasing trend, starting at 1.64% in December 2020 and peaking at 12.69% in December 2021. Subsequently, it decreased to 4.39% by December 2024.
3. Pretax Margin:
- The pretax margin followed a similar pattern, rising from 2.40% in December 2020 to 10.05% in December 2021 before declining to 3.97% by December 2024.
4. Net Profit Margin:
- The net profit margin was negative in December 2020 (-6.42%) but turned positive in the following years. It peaked at 8.91% in December 2021 before gradually decreasing to 2.12% by December 2024.
Overall, despite achieving significant improvements in profitability margins in the initial years, Astrana Health Inc experienced a decline in profitability ratios from 2022 to 2024. This trend indicates a potential need for the company to focus on controlling costs and improving operational efficiency to sustain and enhance its profitability in the long term.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.59% | 9.07% | 10.79% | 11.32% | 0.74% |
| Return on assets (ROA) | 3.18% | 6.51% | 4.68% | 7.95% | -2.91% |
| Return on total capital | 15.98% | 17.25% | 17.42% | 18.55% | 56.81% |
| Return on equity (ROE) | 6.05% | 9.89% | 8.33% | 15.38% | -7.18% |
Astrana Health Inc's profitability ratios show a mixed performance over the past five years.
- Operating return on assets (Operating ROA) has been improving steadily from 0.74% in 2020 to 11.32% in 2021, but then decreased slightly to 10.79% in 2022, 9.07% in 2023, and further to 6.59% in 2024. Overall, the company is effectively generating operating income relative to its total assets, although there was a decline in the most recent year.
- Return on assets (ROA) demonstrates a similar trend, starting at a negative value of -2.91% in 2020, then improving to 7.95% in 2021, but fluctuating at 4.68% in 2022, 6.51% in 2023, and declining to 3.18% in 2024. Despite the positive values in the later years, the company's ability to generate profit from its assets is somewhat inconsistent.
- Return on total capital shows a significant decrease from 56.81% in 2020 to 15.98% in 2024. Even though the ratio remained above 15% over the years, there was a notable drop in the return generated on the total invested capital, indicating potential inefficiencies in capital deployment.
- Return on equity (ROE) started at a negative value of -7.18% in 2020, then increased to 15.38% in 2021, but fluctuated at 8.33% in 2022, 9.89% in 2023, and decreased to 6.05% in 2024. This signifies that the company's ability to generate profit from shareholders' equity has shown fluctuations and a declining trend in recent years.
In conclusion, while Astrana Health Inc has shown improvements in certain profitability ratios, such as Operating ROA and ROA, there are variations and declines in Return on total capital and ROE, indicating potential areas for operational efficiency and capital management enhancements.