Molina Healthcare Inc (MOH)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.13% | 6.58% | 6.73% | 12.76% | 13.68% |
| Operating profit margin | 4.62% | 3.67% | 3.67% | 5.55% | 6.20% |
| Pretax margin | 4.30% | 3.32% | 3.15% | 4.95% | 5.78% |
| Net profit margin | 3.20% | 2.48% | 2.37% | 3.46% | 4.38% |
Molina Healthcare Inc's profitability ratios show a consistent trend over the past five years. The gross profit margin has gradually increased from 14.64% in 2021 to 15.86% in 2023, indicating the company's ability to generate profits after accounting for the cost of goods sold. The operating profit margin has also shown improvement, albeit with some fluctuations, with a slight increase from 3.89% in 2021 to 4.99% in 2023, reflecting the efficiency of the company's operations in generating profits.
The pretax margin has remained relatively stable over the years, ranging from 3.15% in 2021 to 4.30% in 2023. This indicates Molina Healthcare Inc's ability to manage its expenses and generate profits before accounting for taxes. However, the net profit margin has shown a slight decline over the years, from 4.38% in 2019 to 3.20% in 2023, suggesting a decrease in the company's profitability after accounting for all expenses, including taxes.
Overall, Molina Healthcare Inc's profitability ratios demonstrate a mixed performance, with improvements in gross and operating profit margins but a decline in net profit margin. This highlights the importance of closely monitoring the company's expenses and operational efficiency to maintain and enhance its overall profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.56% | 9.53% | 8.35% | 11.31% | 15.38% |
| Return on assets (ROA) | 7.33% | 6.43% | 5.40% | 7.06% | 10.86% |
| Return on total capital | 24.60% | 22.82% | 20.72% | 25.17% | 33.12% |
| Return on equity (ROE) | 25.88% | 26.72% | 25.06% | 32.11% | 37.60% |
Molina Healthcare Inc's profitability ratios indicate the company's ability to generate profits in relation to its assets, capital, and equity over the past five years.
- Operating return on assets (Operating ROA) has shown fluctuation over the period, with a peak of 15.47% in 2019 and a low of 8.85% in 2021. The ratio was 11.42% in 2023, indicating that the company generated $0.1142 in operating income for every dollar of assets.
- Return on assets (ROA) has also varied, ranging from 5.40% in 2021 to 10.86% in 2019. The ratio was 7.33% in 2023, reflecting the company's ability to generate profits from its total assets.
- Return on total capital demonstrates a similar trend, with a high of 30.47% in 2019 and a low of 21.53% in 2021. In 2023, the ratio stood at 25.77%, indicating the company's efficiency in using both equity and debt capital to generate returns.
- Return on equity (ROE) has seen a decrease from 37.60% in 2019 to 25.88% in 2023. This metric shows how well the company is utilizing shareholder equity to generate profits.
Overall, Molina Healthcare Inc has maintained healthy profitability ratios over the years, but there have been fluctuations due to various internal and external factors impacting the company's financial performance. Investors and stakeholders may monitor these ratios to assess the company's profitability and financial health.