Mednax Inc (MD)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 21.13% | 23.68% | 26.85% | 25.91% |
| Operating profit margin | -3.41% | 0.37% | 8.76% | 10.62% | 10.01% |
| Pretax margin | -5.03% | -2.42% | 4.13% | 7.08% | 0.41% |
| Net profit margin | -5.15% | -3.03% | 3.36% | 6.85% | -0.55% |
The profitability ratios of Mednax Inc over the years show a mixed performance.
- Gross profit margin has shown some fluctuation, starting at 25.91% in 2020, increasing to 26.85% in 2021, but then decreasing to 23.68% in 2022 and further dropping to 21.13% in 2023. Suddenly, in 2024, there was a significant jump to 100.00%, which may warrant further investigation due to the unusual spike.
- Operating profit margin has been relatively stable initially, with a slight increase from 10.01% in 2020 to 10.62% in 2021. However, a noticeable decline occurred in the subsequent years, with operating profit margins dropping to 8.76% in 2022 and significantly to 0.37% in 2023, turning negative at -3.41% in 2024. This downward trend indicates potential operational challenges that may require attention.
- Pretax margin saw a significant improvement from 0.41% in 2020 to 7.08% in 2021, suggesting better pre-tax profitability. However, the trend reversed in the following years, with pretax margins declining to 4.13% in 2022, and turning negative at -2.42% in 2023 and -5.03% in 2024. The negative values indicate that the company's expenses exceed its pre-tax earnings, raising concerns about the overall financial health.
- Net profit margin has shown a similar pattern as the pre-tax margin, starting from a negative value of -0.55% in 2020 and steadily improving to 6.85% in 2021. However, it declined to 3.36% in 2022 and turned negative at -3.03% in 2023, continuing the downward trend to -5.15% in 2024. These values imply that the company's net income is decreasing relative to its revenues, signaling potential profitability challenges.
Overall, the analysis suggests that Mednax Inc's profitability has been subject to fluctuations and downward trends in recent years, highlighting the need for a closer examination of its operational efficiency and cost management strategies to address the declining profitability margins.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -3.19% | 0.33% | 7.36% | 7.45% | 5.18% |
| Return on assets (ROA) | -4.81% | -2.72% | 2.83% | 4.81% | -0.29% |
| Return on total capital | -7.92% | -0.74% | 22.43% | 24.28% | 22.99% |
| Return on equity (ROE) | -13.55% | -7.11% | 7.44% | 14.61% | -1.28% |
Based on the provided data for Mednax Inc, we can observe fluctuations in profitability ratios over the years analyzed.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA shows an increasing trend from 5.18% in 2020 to 7.45% in 2021, and remained relatively stable at 7.36% in 2022. However, there was a notable decline to 0.33% in 2023 and a further decrease to -3.19% in 2024, indicating a significant deterioration in operational efficiency and asset utilization.
2. Return on Assets (ROA):
- ROA started at -0.29% in 2020, indicating a negative return on total assets. It improved to 4.81% in 2021 and then decreased to 2.83% in 2022. However, the trend reversed in 2023 with a negative ROA of -2.72% and further decline to -4.81% in 2024, suggesting a decreasing ability to generate profits from total assets.
3. Return on Total Capital:
- The Return on Total Capital ratio saw a positive trend from 22.99% in 2020 to 24.28% in 2021, followed by a slight decline to 22.43% in 2022. However, there was a sharp downturn to -0.74% in 2023 and a significant drop to -7.92% in 2024, indicating challenges in generating returns relative to the total capital employed.
4. Return on Equity (ROE):
- ROE started at -1.28% in 2020, reflecting a negative return for equity holders. It improved significantly to 14.61% in 2021 but then declined to 7.44% in 2022. The trend turned negative in 2023 with a ROE of -7.11% and further decreased to -13.55% in 2024, indicating decreasing profitability for shareholders' equity.
Overall, Mednax Inc's profitability ratios show varying performance over the years, with fluctuations in operational efficiency, return generation from assets and capital, and profitability for equity holders. The declining trends in some ratios, especially in the later years, suggest challenges in sustaining profitability and efficiency for the company.