Centene Corp (CNC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.24% | 20.48% | 11.52% | 11.27% | 13.69% |
| Operating profit margin | 1.95% | 1.90% | 2.52% | 2.59% | 2.77% |
| Pretax margin | 2.61% | 2.34% | 1.36% | 1.44% | 2.50% |
| Net profit margin | 2.03% | 1.75% | 0.83% | 1.07% | 1.63% |
Centene Corp's profitability ratios have shown varying trends over the past five years. The gross profit margin decreased from 13.69% in 2020 to 11.27% in 2021, but then slightly improved to 11.52% in 2022, significantly increased to 20.48% in 2023, and further improved to 21.24% in 2024. This indicates an overall positive trend in the company's ability to generate profit after considering the cost of goods sold.
Similarly, the operating profit margin decreased from 2.77% in 2020 to 2.59% in 2021 and further declined to 2.52% in 2022, showing a trend of decreasing operational efficiency. However, there was a slight improvement to 1.90% in 2023 and a further improvement to 1.95% in 2024, indicating efforts to enhance operational profitability.
The pretax margin also showed a decline from 2.50% in 2020 to 1.44% in 2021, which continued into 2022 with a margin of 1.36%. However, there was a notable recovery in 2023 to 2.34% and further improvement to 2.61% in 2024. This suggests that Centene Corp managed to increase its profitability before accounting for taxes.
On the net profit margin front, there was a decrease from 1.63% in 2020 to 1.07% in 2021, and a further decline to 0.83% in 2022. However, there was a substantial improvement to 1.75% in 2023 and a positive trend continuing into 2024 with a margin of 2.03%. This signifies an increase in the proportion of revenue that translates into net income, reflecting enhanced efficiency in managing expenses.
In summary, Centene Corp has shown a mixed performance in profitability ratios over the years, with improvements in gross profit margin and net profit margin in recent years, indicating potential enhancements in cost management and overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.85% | 3.46% | 4.73% | 4.16% | 4.48% |
| Return on assets (ROA) | 4.01% | 3.19% | 1.56% | 1.72% | 2.63% |
| Return on total capital | 18.78% | 11.34% | 10.92% | 9.25% | 13.58% |
| Return on equity (ROE) | 12.51% | 10.46% | 5.00% | 5.03% | 7.02% |
Centene Corp's profitability ratios indicate some fluctuations over the years.
1. Operating return on assets (Operating ROA) has shown a slight decrease from 4.48% in December 2020 to 3.85% in December 2024. This metric measures how efficiently Centene is generating operating profits from its assets.
2. Return on assets (ROA) experienced significant fluctuations, starting from 2.63% in December 2020, dropping to 1.72% in December 2021, and then increasing to 4.01% in December 2024. ROA reflects Centene's ability to generate profits relative to its total assets.
3. Return on total capital demonstrates a similar trend to ROA, with a decrease in December 2021 and December 2022, followed by a sharp increase to 18.78% in December 2024. This ratio shows how efficiently Centene is generating returns from all sources of capital.
4. Return on equity (ROE) has shown fluctuations as well, with a decrease from 7.02% in December 2020 to 5.03% in December 2021, and then a steady increase to 12.51% in December 2024. ROE indicates how well Centene is utilizing shareholder equity to generate profits.
Overall, Centene Corp's profitability ratios have shown mixed trends, with some improvements in certain metrics towards the end of the observed period. The fluctuations suggest changes in operational efficiency and financial performance over time.