Molina Healthcare Inc (MOH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 8.10% | 8.71% | 8.11% | 8.05% | 8.13% | 6.65% | 6.72% | 6.65% | 6.58% | 7.03% | 6.75% | 6.62% | 6.73% | 8.72% | 9.91% | 11.80% | 12.76% | 12.24% | 12.94% | 12.85% |
| Operating profit margin | 4.20% | 4.19% | 4.10% | 4.31% | 4.62% | 4.10% | 4.10% | 3.88% | 3.67% | 4.04% | 3.78% | 3.64% | 3.67% | 3.59% | 4.19% | 5.32% | 5.55% | 6.66% | 6.77% | 6.01% |
| Pretax margin | 3.91% | 3.91% | 3.81% | 4.01% | 4.30% | 3.77% | 3.76% | 3.54% | 3.32% | 3.60% | 3.32% | 3.15% | 3.15% | 3.09% | 3.65% | 4.73% | 4.95% | 6.13% | 6.24% | 5.59% |
| Net profit margin | 2.90% | 2.92% | 2.84% | 2.99% | 3.20% | 2.80% | 2.81% | 2.64% | 2.48% | 2.69% | 2.48% | 2.37% | 2.37% | 2.30% | 2.68% | 3.38% | 3.46% | 4.37% | 4.51% | 4.15% |
Molina Healthcare Inc's profitability ratios have shown some fluctuations over the past few years.
Starting with the Gross Profit Margin, the company's performance has been on a declining trend, decreasing from 12.85% in March 2020 to 8.10% in December 2024. This indicates that the company's ability to generate profits from its core operations has weakened over time.
Moving on to the Operating Profit Margin, a similar trend can be observed, with the ratio declining from 6.01% in March 2020 to 4.20% in June 2024. This suggests a decrease in the company's efficiency in managing its operating expenses and generating profits from its operations.
The Pretax Margin also depicts a downward trajectory, falling from 5.59% in March 2020 to 3.91% in December 2024. This indicates that the company's profitability before accounting for taxes has been diminishing over the years.
Lastly, the Net Profit Margin shows a consistent decline, dropping from 4.15% in March 2020 to 2.90% in December 2024. This implies that after accounting for all expenses, including taxes, Molina Healthcare Inc's profitability has been shrinking.
In conclusion, Molina Healthcare Inc's profitability ratios reflect a concerning trend of decreasing margins over the years, signaling potential challenges in maintaining and improving the company's overall profitability.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.92% | 10.43% | 10.11% | 9.95% | 10.56% | 9.16% | 9.79% | 9.39% | 9.53% | 9.84% | 9.11% | 8.55% | 8.35% | 8.34% | 9.38% | 11.45% | 11.31% | 15.59% | 15.20% | 14.56% |
| Return on assets (ROA) | 7.54% | 7.26% | 7.00% | 6.90% | 7.33% | 6.26% | 6.71% | 6.39% | 6.43% | 6.56% | 5.98% | 5.57% | 5.40% | 5.35% | 6.00% | 7.27% | 7.06% | 10.24% | 10.12% | 10.06% |
| Return on total capital | 23.01% | 23.13% | 21.85% | 23.14% | 24.60% | 22.48% | 23.07% | 22.98% | 22.82% | 23.66% | 22.38% | 20.77% | 20.72% | 19.58% | 21.74% | 26.19% | 25.17% | 30.49% | 31.25% | 32.38% |
| Return on equity (ROE) | 26.22% | 23.98% | 21.95% | 23.84% | 25.88% | 24.00% | 25.30% | 26.00% | 26.72% | 27.59% | 26.57% | 24.66% | 25.06% | 23.43% | 26.67% | 33.41% | 32.11% | 36.67% | 39.93% | 43.53% |
Molina Healthcare Inc's profitability ratios demonstrate a mixed performance over the period under review.
1. Operating Return on Assets (Operating ROA): The Operating ROA increased from 14.56% in March 2020 to a peak of 15.59% in September 2020 before experiencing a decline. Although there were fluctuations, the ratio generally stayed above 8% from March 2022 to December 2024.
2. Return on Assets (ROA): The ROA followed a similar trend to the Operating ROA, starting at 10.06% in March 2020 and reaching a low of 5.35% in September 2021. The ratio then improved, reaching 7.54% by December 2024.
3. Return on Total Capital: This ratio also displayed variability, with a peak of 32.38% in March 2020 and a low of 19.58% in September 2021. The ratio generally remained above 20% from March 2022 to December 2024.
4. Return on Equity (ROE): The ROE saw a gradual decline from 43.53% in March 2020 to 23.98% in September 2024. While the ratio experienced a slight recovery in December 2024 to 26.22%, it did not reach the levels seen in early 2020.
Overall, Molina Healthcare Inc's profitability ratios reflect a company that has faced challenges but managed to maintain a decent level of profitability over the period analyzed. It will be important for the company to focus on sustaining and improving these ratios to ensure long-term financial health and stakeholder value.