DaVita HealthCare Partners Inc (DVA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 82.35% | 81.50% | 82.02% | 83.85% | 83.74% |
| Operating profit margin | 16.31% | 13.20% | 11.53% | 15.47% | 14.67% |
| Pretax margin | 9.49% | 7.51% | 6.53% | 11.06% | 9.42% |
| Net profit margin | 7.31% | 5.70% | 4.83% | 8.42% | 6.70% |
DaVita HealthCare Partners Inc's profitability ratios show a generally favorable trend over the five-year period from 2020 to 2024.
- The Gross Profit Margin remained consistently high, ranging from 81.50% to 83.85%. This indicates the company's ability to efficiently control its direct production costs while generating a significant percentage of revenue as gross profit.
- The Operating Profit Margin showed some fluctuation but generally improved over the years, increasing from 11.53% in 2022 to 16.31% in 2024. This suggests that DaVita managed its operating expenses effectively while generating higher operating income relative to sales.
- The Pretax Margin experienced variations, with a significant dip in 2022 at 6.53%, recovering to 9.49% in 2024. This ratio reflects DaVita's ability to control its pre-tax costs and generate pre-tax profits as a percentage of total revenue.
- The Net Profit Margin, which indicates the company's bottom-line profitability, showed an overall increasing trend, rising from 4.83% in 2022 to 7.31% in 2024. This suggests that DaVita was successful in managing its overall expenses and taxes to maximize its net income relative to total revenue.
In conclusion, DaVita HealthCare Partners Inc demonstrated strong profitability performance over the five-year period, with improvements in operating efficiency and effective cost management leading to increased bottom-line 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) | 12.09% | 9.49% | 7.91% | 10.50% | 9.98% |
| Return on assets (ROA) | 5.42% | 4.09% | 3.31% | 5.71% | 4.55% |
| Return on total capital | 1,725.93% | 151.76% | 187.98% | 237.90% | 122.48% |
| Return on equity (ROE) | 773.06% | 65.48% | 78.67% | 129.51% | 55.92% |
DaVita HealthCare Partners Inc has shown a consistent improvement in its profitability ratios over the years. The Operating return on assets (Operating ROA) increased from 9.98% in 2020 to 12.09% in 2024, indicating the company's efficiency in generating operating income from its assets.
Similarly, the Return on assets (ROA) improved from 4.55% in 2020 to 5.42% in 2024, reflecting the company's ability to generate profits relative to its total assets.
The Return on total capital also saw a significant increase, from 122.48% in 2020 to 1,725.93% in 2024, demonstrating the company's effectiveness in generating returns for both debt and equity investors.
Lastly, the Return on equity (ROE) showed a remarkable improvement, from 55.92% in 2020 to 773.06% in 2024, indicating the company's ability to generate profits for its shareholders relative to their equity investments.
Overall, DaVita HealthCare Partners Inc's profitability ratios point to a strong financial performance and efficient utilization of its assets and capital, leading to increased returns for both investors and shareholders over the years.