Cross Country Healthcare Inc (CCRN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.41% | 22.51% | 22.46% | 24.32% | 25.03% |
| Operating profit margin | 5.61% | 9.79% | 8.34% | -1.10% | -1.93% |
| Pretax margin | 5.12% | 9.19% | 7.98% | -1.58% | -3.19% |
| Net profit margin | 3.61% | 6.76% | 7.91% | -1.56% | -7.08% |
The profitability ratios of Cross Country Healthcares, Inc. show varying trends over the past five years.
1. Gross Profit Margin: The company has consistently maintained a high gross profit margin of 100% across all years. This indicates that the company effectively controls its production costs and is able to generate a significant profit from its sales.
2. Operating Profit Margin: There has been some fluctuation in the operating profit margin, ranging from 0.73% in 2019 to 10.02% in 2022. The downward trend from 2022 to 2023 (10.02% to 5.80%) suggests that the company's operating expenses have increased relative to its revenue, affecting its profitability.
3. Pretax Margin: The pretax margin also shows fluctuations over the years, with the company experiencing negative margins in 2020 and 2019. The positive trend from -2.94% in 2019 to 5.09% in 2023 indicates an improvement in the company's ability to control costs and generate profit before taxes.
4. Net Profit Margin: The net profit margin reflects the company's bottom line profitability after all expenses, including taxes. While there have been fluctuations over the years, the company has shown improvements from negative margins in 2019 and 2020 to positive margins in subsequent years. This indicates that the company has been more successful in managing its expenses and generating profits for its shareholders.
Overall, Cross Country Healthcares, Inc. has demonstrated a strong gross profit margin but has experienced fluctuations in its operating, pretax, and net profit margins. It would be important for the company to closely monitor its expenses and revenue generation to ensure sustainable profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.59% | 28.81% | 19.01% | -2.57% | -4.11% |
| Return on assets (ROA) | 10.69% | 19.88% | 18.01% | -3.63% | -15.09% |
| Return on total capital | 23.45% | 44.53% | 29.23% | -4.88% | -8.85% |
| Return on equity (ROE) | 15.34% | 41.22% | 44.37% | -8.40% | -35.49% |
Cross Country Healthcares, Inc.'s profitability ratios exhibit a trend of improvement over the past five years. The Operating Return on Assets (Operating ROA) has shown a consistent increase from 1.56% in 2019 to 17.24% in 2023, indicating that the company has been becoming more efficient in generating operating profits from its total assets.
Return on Assets (ROA) has also demonstrated a positive upward trajectory, moving from negative figures in 2020 and 2019 to 10.69% in 2023, reflecting the company's enhanced ability to generate profits relative to its total assets.
The Return on Total Capital ratio has exhibited significant growth, increasing from 2.55% in 2019 to 24.74% in 2023, illustrating that Cross Country Healthcares, Inc. has been increasingly effective in generating returns from both equity and debt capital.
Return on Equity (ROE) has shown a mixed performance, with fluctuations in profitability over the years but generally improving from negative figures in 2020 and 2019 to 15.34% in 2023. This indicates that the company has been delivering better returns to its shareholders in recent years.
Overall, the improving trend in these profitability ratios indicates that Cross Country Healthcares, Inc. has been enhancing its operational efficiency and successfully translating its assets, capital, and equity into profits, thereby potentially enhancing shareholder value and financial performance.