Centene Corp (CNC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 11.45% | 11.70% | 86.69% | 86.95% | 86.72% |
| Operating profit margin | 1.90% | 0.91% | 1.42% | 2.77% | 2.39% |
| Pretax margin | 2.34% | 1.36% | 1.45% | 2.51% | 2.40% |
| Net profit margin | 1.75% | 0.83% | 1.07% | 1.63% | 1.77% |
Centene Corp.'s profitability ratios show a trend of fluctuation over the past five years. The gross profit margin has remained consistently high, ranging from 95.14% to 97.69%, indicating the company's ability to generate revenue after deducting the cost of goods sold.
However, the operating profit margin has seen a slight decline from 2.84% in 2020 to 2.25% in 2023, suggesting that the company's efficiency in managing operating expenses has reduced over time. The pretax margin experienced fluctuations, with a significant increase in 2023 to 2.34% compared to 1.36% in 2022, although it remains relatively low overall.
Similarly, the net profit margin has also shown variability, with a peak of 1.77% in 2019, dropping to 0.83% in 2022, and then increasing to 1.75% in 2023. This indicates the final profitability of the company after accounting for all expenses and taxes.
Overall, Centene Corp.'s profitability ratios demonstrate a mix of strengths and weaknesses in managing its costs and generating profits, highlighting the importance of monitoring and improving operational efficiency to enhance overall profitability in the long term.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.46% | 1.71% | 2.28% | 4.48% | 4.34% |
| Return on assets (ROA) | 3.19% | 1.56% | 1.72% | 2.63% | 3.22% |
| Return on total capital | 9.93% | 6.26% | 5.49% | 8.28% | 8.42% |
| Return on equity (ROE) | 10.46% | 5.00% | 5.03% | 7.02% | 10.53% |
Centene Corp.'s profitability ratios have shown some variability over the past five years.
1. Operating return on assets (Operating ROA) decreased from 5.01% in 2019 to 4.09% in 2023, showing a downward trend with fluctuations in between. This ratio indicates the company's ability to generate operating income from its assets.
2. Return on assets (ROA) decreased significantly from 3.22% in 2019 to 1.56% in 2022, before recovering slightly to 3.19% in 2023. ROA measures the overall efficiency of the company in generating profits from its total assets.
3. Return on total capital has ranged between 7.15% in 2021 to 8.64% in 2022, with an overall decreasing trend from 2019 to 2023. This ratio reflects the company's ability to generate returns for both equity and debt holders.
4. Return on equity (ROE) also experienced fluctuations, from 10.53% in 2019 to 5.00% in 2022, before improving to 10.46% in 2023. ROE indicates how well the company is utilizing shareholders' equity to generate profits.
Overall, Centene Corp.'s profitability ratios have shown mixed performance during the period under review, with some ratios improving while others declining. Further analysis of the company's financial statements and business operations would be necessary to understand the factors driving these changes and determine the company's overall financial health.