The Ensign Group Inc (ENSG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 15.36% | 13.85% | 16.87% | 17.66% | 16.91% |
| Operating profit margin | 8.41% | 6.86% | 9.81% | 9.91% | 9.29% |
| Pretax margin | 9.05% | 7.32% | 9.56% | 9.70% | 9.02% |
| Net profit margin | 6.99% | 5.63% | 7.43% | 7.41% | 7.10% |
The Ensign Group Inc's profitability ratios have shown varied performance over the years.
1. Gross Profit Margin: The company's gross profit margin has fluctuated between 16.87% to 17.66% from 2020 to 2024, showing some volatility but generally remaining around the mid-teens. This indicates the company's ability to generate profit from its core operations after accounting for cost of goods sold.
2. Operating Profit Margin: The operating profit margin has also fluctuated, ranging from 6.86% to 9.91% over the same period. This ratio reflects the company's ability to generate profit from its operating activities, and the fluctuation could indicate changes in operational efficiency and cost management.
3. Pretax Margin: The pretax margin has fluctuated between 7.32% to 9.70% over the years. This ratio reflects the company's ability to generate profit before accounting for taxes. The fluctuation in this ratio could be influenced by factors such as changes in tax rates or the company's overall financial performance.
4. Net Profit Margin: The net profit margin has shown a similar trend to the pretax margin, ranging from 5.63% to 7.43%. This ratio reflects the company's ability to generate profit after all expenses, including taxes, have been deducted. The fluctuation in this ratio could be influenced by various factors such as changes in operating expenses, interest expenses, or tax rates.
In summary, The Ensign Group Inc's profitability ratios show a trend of fluctuation over the years, indicating varying levels of efficiency and profitability in its operations. It is important for the company to closely monitor these ratios and implement strategies to improve profitability and operational efficiency where necessary.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.67% | 6.11% | 8.60% | 9.14% | 8.77% |
| Return on assets (ROA) | 6.38% | 5.01% | 6.51% | 6.83% | 6.70% |
| Return on total capital | 18.11% | 17.13% | 21.34% | 22.30% | 27.64% |
| Return on equity (ROE) | 16.22% | 14.04% | 18.01% | 19.07% | 20.84% |
The Ensign Group Inc's profitability ratios show varying trends over the years.
1. Operating return on assets (Operating ROA) has generally improved from 8.77% in December 31, 2020 to 9.14% in December 31, 2021, but then decreased to 8.60% in December 31, 2022. Subsequently, there was a more significant drop to 6.11% by December 31, 2023, followed by a slight increase to 7.67% by December 31, 2024. This ratio indicates the company's operational efficiency in generating profits from its assets.
2. Return on assets (ROA) followed a similar pattern, starting at 6.70% in December 31, 2020, peaking at 6.83% in December 31, 2021, before declining to 6.51% in December 31, 2022. A notable decrease was observed to 5.01% by December 31, 2023, and then a recovery to 6.38% by December 31, 2024. ROA measures the company's overall profitability in relation to its total assets.
3. Return on total capital exhibited a significant decrease in returns over the years, starting at 27.64% in December 31, 2020, and declining to 22.30% by December 31, 2021. The trend continued downward to 21.34% in December 31, 2022, 17.13% in December 31, 2023, and 18.11% in December 31, 2024. This ratio indicates how effectively the company is generating returns from its total capital employed.
4. Return on equity (ROE) decreased consistently from 20.84% in December 31, 2020 to 19.07% in December 31, 2021, 18.01% in December 31, 2022, 14.04% in December 31, 2023, and finally 16.22% in December 31, 2024. ROE reflects the company's ability to generate profits from shareholders' equity.
Overall, The Ensign Group Inc's profitability ratios show a mixed performance with certain ratios improving or fluctuating, while others experienced declines over the years. Further analysis combining these ratios with other financial metrics would provide a more comprehensive view of the company's financial health and performance.