The Ensign Group Inc (ENSG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.85% | 16.87% | 17.66% | 16.91% | 14.29% |
| Operating profit margin | 6.86% | 9.81% | 9.91% | 9.29% | 6.37% |
| Pretax margin | 7.32% | 9.56% | 9.70% | 9.02% | 6.63% |
| Net profit margin | 5.63% | 7.43% | 7.41% | 7.10% | 5.45% |
Ensign Group Inc's profitability ratios show fluctuations over the past five years. The gross profit margin has varied between 20.42% in 2019 to 23.12% in 2021, indicating how efficiently the company is generating revenue. The operating profit margin, which reflects operating efficiency, has ranged from 6.34% in 2019 to 9.91% in 2021. The pretax margin, a measure of overall profitability before taxes, has shown a similar trend, with fluctuations between 5.70% in 2019 to 9.82% in 2021.
The net profit margin, indicating profitability after all expenses, displays a similar pattern, ranging from 5.43% in 2019 to 7.43% in 2022. Despite some variability, Ensign Group Inc has generally maintained positive profit margins, demonstrating its ability to generate earnings from its operations. Further analysis of the company's financial performance and factors influencing these ratios would provide a more in-depth understanding of its profitability trends.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.11% | 8.60% | 9.14% | 8.77% | 5.47% |
| Return on assets (ROA) | 5.01% | 6.51% | 6.83% | 6.70% | 4.68% |
| Return on total capital | 17.13% | 21.34% | 22.30% | 27.64% | 22.95% |
| Return on equity (ROE) | 14.04% | 18.01% | 19.07% | 20.84% | 16.90% |
Ensign Group Inc's profitability ratios show a generally positive trend over the past five years.
1. Operating return on assets (Operating ROA) has decreased from 8.60% in 2022 to 6.11% in 2023. This ratio measures the company's operating income generated per dollar of assets, indicating a slight decline in operational efficiency.
2. Return on assets (ROA) has also shown a decrease from 6.51% in 2022 to 5.01% in 2023. ROA evaluates the company's ability to generate profit from its total assets, and the decrease may indicate a slight decrease in profitability relative to the assets employed.
3. Return on total capital has decreased from 21.19% in 2022 to 15.56% in 2023. This ratio measures the return generated from the company's total capital, including both equity and debt, pointing towards a decline in overall capital efficiency.
4. Return on equity (ROE) has declined from 18.01% in 2022 to 14.04% in 2023. ROE indicates how effectively the company is utilizing shareholder equity to generate profits, suggesting a decrease in shareholder value creation.
Overall, Ensign Group Inc's profitability ratios have shown a mixed performance in 2023, with decreases in several key metrics compared to the prior year. It is important for the company to closely monitor and address these trends to sustain and improve its profitability in the future.