DaVita HealthCare Partners Inc (DVA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 81.50% | 82.02% | 83.85% | 83.74% | 83.81% |
| Operating profit margin | 13.20% | 11.53% | 15.47% | 14.67% | 14.43% |
| Pretax margin | 7.51% | 6.53% | 11.06% | 9.42% | 9.58% |
| Net profit margin | 5.70% | 4.83% | 8.42% | 6.70% | 7.12% |
DaVita Inc's profitability ratios exhibit fluctuating trends over the past five years. The gross profit margin has remained consistently strong at 100%, indicating efficient cost management in generating revenue.
The operating profit margin has shown some variability, with a notable increase from 2021 to 2022, followed by a slight decrease in 2023. This suggests fluctuations in the company's operating expenses relative to its sales.
The pretax margin has also fluctuated, reaching a peak in 2021 before declining in 2022 and 2023. This indicates the company's ability to generate profits before accounting for taxes has varied over the years.
Finally, the net profit margin has shown a similar trend to the pretax margin, reaching its highest point in 2021 before decreasing in subsequent years. This reflects DaVita Inc's ability to generate profits after accounting for all expenses, including taxes.
Overall, DaVita Inc's profitability ratios demonstrate a mix of stability and variability, indicating the company's ability to manage costs and generate profits, albeit with some fluctuations in recent years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.49% | 7.91% | 10.50% | 9.98% | 9.49% |
| Return on assets (ROA) | 4.09% | 3.31% | 5.71% | 4.55% | 4.68% |
| Return on total capital | 151.76% | 187.98% | 237.90% | 122.48% | 77.03% |
| Return on equity (ROE) | 65.48% | 78.67% | 129.51% | 55.92% | 38.01% |
DaVita Inc's profitability ratios exhibit a mixed trend over the past five years. The operating return on assets (Operating ROA) has shown fluctuation, with a peak of 10.34% in 2021 and a decline to 9.48% in 2023. This ratio measures the company's operating income generated per dollar of assets, indicating DaVita's ability to generate profits from its operational activities.
On the other hand, the return on assets (ROA) has also varied, ranging from 3.31% in 2022 to 5.71% in 2021. This ratio provides insight into DaVita's overall profitability by evaluating the earnings generated relative to its total assets.
DaVita's return on total capital has seen an upward trend, reaching 14.88% in 2023 from 12.19% in 2022. This ratio reflects the company's efficiency in generating profits from both equity and debt investments.
The return on equity (ROE) has been volatile, with a significant increase to 129.51% in 2021 followed by a decline to 65.48% in 2023. ROE measures the return earned on shareholders' equity investment in the company, indicating DaVita's ability to generate profits for its shareholders.
Overall, DaVita Inc's profitability ratios reflect variability in performance over the years, suggesting fluctuations in operating efficiency, asset utilization, and shareholder value creation. Further analysis of underlying factors driving these changes would be beneficial for a more comprehensive understanding of the company's financial health and performance.