National HealthCare Corporation (NHC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.75% | 32.04% | 31.51% | 34.96% | 33.54% |
| Operating profit margin | 6.56% | 5.00% | 2.94% | 4.74% | 4.68% |
| Pretax margin | 10.42% | 7.91% | 2.74% | 13.92% | 5.09% |
| Net profit margin | 7.80% | 5.85% | 2.07% | 12.90% | 4.07% |
National HealthCare Corporation's profitability ratios have shown varying trends over the past five years. The gross profit margin, which indicates the percentage of revenue retained after accounting for the cost of goods sold, has ranged from 31.51% to 34.96%. This suggests that the company has maintained a relatively stable level of profitability in terms of gross profit.
The operating profit margin, reflecting the company's ability to generate profit from its core operations, exhibited fluctuations ranging from 2.94% to 6.56%. This indicates some variability in the company's operational efficiency and cost management over the years.
The pretax margin, which measures the company's profitability before taxes, showed a more pronounced variability, ranging from 2.74% to 13.92%. This suggests that the company's earnings performance before tax expenses has been subject to significant fluctuations.
Finally, the net profit margin, representing the percentage of revenue that translates into actual profit for shareholders after all expenses are deducted, fluctuated between 2.07% and 12.90%. This indicates that the company's bottom-line profitability has also seen notable changes over the years.
Overall, National HealthCare Corporation's profitability ratios demonstrate a mixed performance, with some variability in its ability to generate profits at different levels of its financial statements over the past five years. Further analysis may be needed to assess the underlying reasons for these fluctuations and to determine the company's overall financial health and sustainability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.63% | 4.36% | 2.50% | 3.63% | 3.54% |
| Return on assets (ROA) | 6.69% | 5.10% | 1.76% | 9.88% | 3.07% |
| Return on total capital | 12.65% | 9.97% | 3.46% | 16.65% | 6.75% |
| Return on equity (ROE) | 10.40% | 7.35% | 2.57% | 15.35% | 5.27% |
National HealthCare Corporation's profitability ratios indicate a varying performance over the years.
1. Operating Return on Assets (Operating ROA) has shown a slight increase from 3.54% in 2020 to 5.63% in 2024, with a dip in 2022. This ratio measures the company's ability to generate operating profits from its assets.
2. Return on Assets (ROA) has fluctuated significantly, reaching a peak of 9.88% in 2021 before dropping to 1.76% in 2022. It then improved to 6.69% in 2024. ROA reflects the company's overall efficiency in utilizing its assets to generate profits.
3. Return on Total Capital demonstrates a similar trend, escalating from 6.75% in 2020 to 16.65% in 2021, before declining and then recovering to 12.65% in 2024. This ratio assesses the profitability of both debt and equity capital invested in the company.
4. Return on Equity (ROE) has shown a comparable pattern, rising from 5.27% in 2020 to 15.35% in 2021, dropping in 2022, and then improving to 10.40% in 2024. ROE measures the return generated on shareholder equity investments.
In conclusion, National HealthCare Corporation's profitability ratios have exhibited fluctuations, but overall, there has been an improvement in performance, particularly in the later years, indicating better utilization of assets and capital to generate profits.