Community Healthcare Trust Inc (CHCT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 40.51% | 51.70% | 53.06% | 54.88% | 50.79% |
| Operating profit margin | -37.25% | -13.63% | -10.61% | -8.22% | -18.53% |
| Pretax margin | 7.20% | 22.68% | 25.16% | 25.44% | 16.22% |
| Net profit margin | 6.84% | 22.54% | 24.83% | 25.21% | 13.77% |
Community Healthcare Trust Inc's profitability ratios have shown variations over the past five years. The gross profit margin has experienced a slight decline from 83.27% in 2021 to 81.64% in 2023, indicating a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
The operating profit margin has also decreased, with a significant drop from 36.33% in 2021 to 22.24% in 2023. This suggests that the company's operational efficiency has weakened, resulting in lower profitability from its core business activities.
Similarly, the pretax margin has declined consistently over the years, falling from 25.02% in 2021 to 7.11% in 2023. This indicates that Community Healthcare Trust Inc's profitability before taxes has decreased significantly, potentially indicating higher expenses or lower revenue relative to income.
The net profit margin, which reflects the company's bottom line profitability after all expenses have been deducted, has also shown a downward trend, dropping from 22.28% in 2021 to 4.52% in 2023. This decline in net profit margin indicates that the company's profitability after accounting for all costs and taxes has decreased substantially.
Overall, the decreasing trend in profitability ratios raises concerns about Community Healthcare Trust Inc's ability to generate sufficient profits and manage its costs effectively in the current business environment. Further analysis into the drivers of these changes is recommended to identify potential areas for improvement.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -4.45% | -1.52% | -1.27% | -0.93% | -2.00% |
| Return on assets (ROA) | 0.82% | 2.51% | 2.98% | 2.85% | 1.49% |
| Return on total capital | 5.05% | 6.85% | 7.21% | 6.48% | 5.42% |
| Return on equity (ROE) | 1.50% | 4.43% | 4.87% | 4.44% | 2.37% |
Community Healthcare Trust Inc's profitability ratios have shown fluctuating trends over the past five years.
1. Operating return on assets (Operating ROA) has been decreasing from 4.36% in 2021 to 2.66% in 2023. This ratio measures the company's ability to generate operating income from its assets.
2. Return on assets (ROA) has varied widely, with a low of 0.54% in 2023 and a high of 2.68% in 2021. ROA indicates the company's overall profitability in relation to its total assets.
3. Return on total capital has also shown fluctuations, ranging from 2.73% in 2023 to 4.50% in 2021. This ratio evaluates the company's effectiveness in generating returns for both debt and equity holders.
4. Return on equity (ROE) has ranged from 0.99% in 2023 to 4.37% in 2021. ROE measures the company's profitability from the perspective of its shareholders.
Overall, the decreasing trend in the Operating ROA, ROA, and ROE ratios in recent years suggests a potential decrease in the company's efficiency in generating profits from its assets and equity. Community Healthcare Trust Inc should focus on improving profitability measures to enhance shareholder value and ensure sustainable growth.