CorVel Corp (CRVL)

Return on sales

CorVel Corp's profitability ratios provide insights into its ability to generate earnings relative to its revenue and operational expenses.

1. Gross Profit Margin:
- CorVel Corp's gross profit margin has experienced some fluctuations over the past five years, ranging from 21.27% in 2020 to 23.55% in 2022. The margin indicates the company's efficiency in managing production costs relative to revenue. A higher margin suggests effective cost control, while a declining margin might signal increased production expenses.

2. Operating Profit Margin:
- The operating profit margin, which reflects the company's ability to generate profits from core operations, has ranged from 9.91% in 2020 to 12.99% in 2022. A higher operating profit margin indicates better operational efficiency and profitability, while a lower margin may suggest higher operating expenses relative to revenue.

3. Pretax Margin:
- CorVel Corp's pretax margin has varied between 10.25% in 2020 and 13.08% in 2022. This margin represents the proportion of revenue that translates to pre-tax profit, taking into account operating and non-operating expenses. A higher pretax margin indicates better overall profitability before tax obligations.

4. Net Profit Margin:
- The net profit margin, indicating the company's bottom-line profitability after all expenses, has ranged from 8.00% in 2020 to 10.28% in 2022. This margin reflects the company's ability to control expenses, manage taxes, and generate net income relative to revenue. A higher net profit margin reflects stronger profitability and efficiency.

Overall, CorVel Corp has shown fluctuations in its profitability ratios over the past five years, with varying levels of margins for gross profit, operating profit, pre-tax profit, and net profit. Analyzing these ratios can provide valuable insights into the company's financial performance and efficiency in utilizing its resources to generate profits.

---

Return on investment

CorVel Corp has displayed consistent profitability over the past five years, as evidenced by its profitability ratios.

1. Operating Return on Assets (Operating ROA): This ratio indicates the company's ability to generate profits from its assets before interest and taxes. CorVel Corp's Operating ROA has been relatively stable, ranging from 13.35% in 2021 to a peak of 21.05% in 2023. The ratio for 2024 stands at 20.42%, reflecting strong operational efficiency.

2. Return on Assets (ROA): ROA measures how efficiently the company is utilizing its assets to generate earnings. CorVel Corp's ROA has shown an increasing trend over the past five years, from 10.91% in 2021 to 16.77% in 2024. This indicates improved asset utilization and profitability.

3. Return on Total Capital: This ratio reflects the overall return generated on all the capital invested in the company, including debt and equity. CorVel Corp's Return on Total Capital has fluctuated but generally increased over the years, reaching 38.44% in 2024. This demonstrates the company's ability to generate strong returns on the total capital employed.

4. Return on Equity (ROE): ROE measures the return generated on shareholders' equity. CorVel Corp has consistently delivered strong ROE figures, with the ratio ranging from 21.03% in 2021 to 32.83% in 2023. In 2024, the ROE stands at 30.79%, indicating that the company is effectively generating profits for its shareholders.

Overall, CorVel Corp's profitability ratios suggest a well-managed company that has been successful in efficiently utilizing its assets, capital, and equity to generate strong returns for investors over the years.