Molina Healthcare Inc (MOH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.10% | 8.13% | 6.58% | 6.73% | 12.76% |
| Operating profit margin | 4.20% | 4.62% | 3.67% | 3.67% | 5.55% |
| Pretax margin | 3.91% | 4.30% | 3.32% | 3.15% | 4.95% |
| Net profit margin | 2.90% | 3.20% | 2.48% | 2.37% | 3.46% |
Molina Healthcare Inc's profitability ratios have shown varying trends over the last five years. The gross profit margin, which measures the percentage of revenue retained after accounting for the cost of goods sold, decreased from 12.76% in 2020 to 6.58% in 2022 but slightly improved to 8.10% in 2024.
The operating profit margin, indicating the efficiency of the company in managing its operating expenses, followed a similar trajectory, declining from 5.55% in 2020 to 3.67% in 2021 and 2022, then increasing to 4.20% by 2024. This suggests that cost management was a challenge for the company in the initial years but has since shown signs of improvement.
The pretax margin, reflecting the proportion of revenue remaining after deducting all operating expenses and before taxes, fluctuated between 3.15% in 2021 and 4.30% in 2023, with a slight dip to 3.91% in 2024. This indicates that Molina Healthcare Inc's profitability before taxes has been somewhat volatile over the period.
Lastly, the net profit margin, which reveals the company's net income as a percentage of revenue, ranged from 2.37% in 2021 to 3.20% in 2023, declining slightly to 2.90% in 2024. Although there was an improvement in profitability in 2023, the net profit margin decreased again in the most recent year.
Overall, Molina Healthcare Inc has experienced fluctuations in its profitability ratios, with challenges in maintaining gross and net profit margins but showing some improvement in operating profit margin over the analyzed period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.92% | 10.56% | 9.53% | 8.35% | 11.31% |
| Return on assets (ROA) | 7.54% | 7.33% | 6.43% | 5.40% | 7.06% |
| Return on total capital | 23.01% | 24.60% | 22.82% | 20.72% | 25.17% |
| Return on equity (ROE) | 26.22% | 25.88% | 26.72% | 25.06% | 32.11% |
Molina Healthcare Inc's profitability ratios have exhibited a generally positive trend over the years, albeit with some fluctuations.
1. Operating Return on Assets (Operating ROA): The Operating ROA for Molina Healthcare Inc has decreased from 11.31% in 2020 to 8.35% in 2021, before increasing to 10.92% in 2024. This ratio indicates that the company's operating income generated from its assets has fluctuated but improved over time.
2. Return on Assets (ROA): The ROA decreased from 7.06% in 2020 to 5.40% in 2021, before rising consistently to 7.54% in 2024. This ratio reflects Molina Healthcare Inc's overall profitability in relation to its total assets, showing a positive trajectory over the years.
3. Return on Total Capital: The Return on Total Capital ratio declined from 25.17% in 2020 to 20.72% in 2021, but then showed an upward trend, reaching 23.01% in 2024. This metric evaluates the company's ability to generate returns from both equity and debt sources, indicating an improving performance.
4. Return on Equity (ROE): The ROE decreased from 32.11% in 2020 to 25.06% in 2021, before stabilizing around 26% in the subsequent years. This ratio assesses the return earned on the shareholders' equity, suggesting that Molina Healthcare Inc has maintained a satisfactory level of profitability relative to its equity base.
In summary, Molina Healthcare Inc's profitability ratios demonstrate a mix of fluctuations and improvements over the years, with a general positive trend indicating the company's ability to generate returns from its assets, capital, and equity.