National HealthCare Corporation (NHC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.04% | 31.51% | 34.96% | 33.54% | 33.76% |
| Operating profit margin | 5.00% | 2.94% | 4.74% | 4.68% | 4.92% |
| Pretax margin | 7.91% | 2.74% | 13.92% | 5.09% | 8.86% |
| Net profit margin | 5.85% | 2.07% | 12.90% | 4.07% | 6.85% |
National Healthcare Corp. has shown consistency in maintaining a high gross profit margin of 100% over the past five years, indicating effective cost management in generating revenues. However, the operating profit margin has varied significantly, with a notable improvement in 2023 compared to negative margins in 2021 and 2020. This suggests the company's operational efficiency has been volatile.
The pretax margin for National Healthcare Corp. has also fluctuated, with a significant decrease in 2022 followed by a sharp increase in 2023. This indicates fluctuations in pre-tax profitability and the company's ability to control expenses and generate income before taxes.
The net profit margin of the company has also shown variability, with a significant increase in 2023 compared to the previous two years. This suggests that the company's bottom-line profitability has improved in 2023, indicating better control over expenses and higher net income relative to revenue.
Overall, the profitability ratios of National Healthcare Corp. reflect a company that has experienced fluctuations in operational and net profitability but has recently shown improvements in 2023. The company should continue to focus on cost control and revenue generation to sustain and further improve its profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.36% | 2.50% | 3.63% | 3.54% | 3.81% |
| Return on assets (ROA) | 5.10% | 1.76% | 9.88% | 3.07% | 5.30% |
| Return on total capital | 9.97% | 3.46% | 16.65% | 6.75% | 11.74% |
| Return on equity (ROE) | 7.35% | 2.57% | 15.35% | 5.27% | 8.76% |
National Healthcare Corp. has shown a mixed performance in terms of profitability ratios over the past five years.
The Operating return on assets (Operating ROA) has fluctuated during this period, improving significantly from -0.24% in 2021 to 3.91% in 2023. This indicates that the company has been able to generate higher operating income relative to its total assets in the most recent year.
The Return on assets (ROA) also reflects a similar trend, with a substantial decrease in 2021 followed by a recovery in the subsequent years. The ROA stood at 5.10% in 2023, demonstrating that the company efficiently utilizes its assets to generate profit.
Return on total capital has varied widely, with a notable increase from 0.19% in 2021 to 5.85% in 2023. This indicates an improvement in the company's ability to generate returns from both equity and debt capital employed.
Return on equity (ROE) has shown fluctuations as well, with a sharp decline in 2021 followed by a significant increase to 7.35% in 2023. This metric demonstrates the company's ability to generate profit for shareholders from the equity invested in the business.
Overall, National Healthcare Corp. has shown improvements in its profitability ratios in the most recent year, indicating an enhanced ability to generate income from its assets, capital, and equity.