Omnicell Inc (OMCL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 41.82% | 43.88% | 48.48% | 44.66% | 46.23% |
| Operating profit margin | -2.94% | -0.17% | 7.82% | 3.84% | 8.29% |
| Pretax margin | -1.69% | -0.18% | 5.77% | 3.17% | 7.82% |
| Net profit margin | -1.71% | 0.42% | 6.80% | 3.48% | 6.49% |
Omnicell, Inc.'s profitability ratios have shown some fluctuation over the past five years. The gross profit margin has trended downwards from 48.71% in 2019 to 43.31% in 2023, indicating a decrease in the percentage of revenue remaining after deducting the cost of goods sold.
The operating profit margin has also exhibited variability, with negative margins in 2022 and 2023. This suggests that Omnicell has faced challenges in generating profits from its core business operations in these years.
Similarly, the pretax margin has shown inconsistency, experiencing negative margins in 2023 and 2022 after reaching a peak of 8.24% in 2019. This indicates fluctuations in the company's ability to generate profits before accounting for taxes.
The net profit margin, which represents the percentage of revenue that translates into net income, has shown a decreasing trend, falling from 6.84% in 2019 to -1.78% in 2023. This indicates that Omnicell's bottom line profitability has been under pressure in recent years.
Overall, Omnicell's profitability ratios reflect a mixed performance with some years showing strong profitability and others demonstrating challenges in maintaining margins. Analysts should further investigate the factors contributing to these fluctuations to assess the company's overall financial health and sustainability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -1.57% | -0.11% | 4.18% | 1.95% | 6.31% |
| Return on assets (ROA) | -0.91% | 0.26% | 3.63% | 1.76% | 4.94% |
| Return on total capital | -1.98% | -0.14% | 7.81% | 2.48% | 8.75% |
| Return on equity (ROE) | -1.71% | 0.50% | 6.79% | 3.33% | 7.26% |
Omnicell, Inc.'s profitability ratios have exhibited mixed performance over the past five years.
1. Operating Return on Assets (Operating ROA): This ratio indicates how efficiently the company generates operating profit from its assets. Omnicell's Operating ROA has shown a declining trend, decreasing from 6.31% in 2019 to -1.57% in 2023, indicating a significant decrease in operating efficiency.
2. Return on Assets (ROA): ROA measures the overall profitability of the company in generating profit from its total assets. Omnicell's ROA has also experienced a fluctuating pattern, with a low of -0.91% in 2023 and a high of 4.94% in 2019. The negative ROA in 2023 suggests that the company's profitability from its assets was insufficient.
3. Return on Total Capital: This ratio reflects the company's ability to generate returns for both equity and debt providers. Omnicell's Return on Total Capital has followed a similar trajectory to ROA, with a negative figure of -1.98% in 2023, signaling a decline in returns for capital providers.
4. Return on Equity (ROE): ROE measures the profitability attributable to shareholders' equity. Omnicell's ROE has also shown varying results, hitting a low of -1.71% in 2023 and a peak of 7.26% in 2019. This indicates that shareholders' returns have been inconsistent, with a recent dip in 2023.
In conclusion, Omnicell's profitability ratios have been under pressure in recent years, with declining trends in operating efficiency and overall profitability. It is essential for the company to closely monitor and improve these ratios to enhance shareholder value and ensure sustainable growth in the future.