Owens & Minor Inc (OMI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.56% | 18.35% | 15.46% | 15.10% | 12.25% |
| Operating profit margin | 1.01% | 1.44% | 3.77% | 2.41% | 0.79% |
| Pretax margin | -0.53% | 0.11% | 2.83% | 0.61% | -0.74% |
| Net profit margin | -0.40% | 0.22% | 2.26% | 0.35% | -0.68% |
Owens & Minor, Inc.'s profitability ratios have exhibited fluctuations over the past five years. The gross profit margin has shown a positive trend, increasing from 12.25% in 2019 to 20.56% in 2023. This indicates the company's ability to generate revenue after accounting for the cost of goods sold has improved over time.
However, the operating profit margin has been relatively stable, hovering around 1-4% range during the same period. This suggests that the company's efficiency in managing operating expenses and generating profits from its core business operations has been consistent.
The pretax margin has been volatile, ranging from -0.53% in 2023 to 2.83% in 2021. The negative margin in 2023 indicates that the company incurred losses before taxes that year. This could be due to various factors such as an increase in expenses or a decline in revenue.
Similarly, the net profit margin has also shown fluctuations, with a negative margin in 2019 and 2023. The company experienced a net loss in 2019 and a slight improvement in profitability in 2021, with a net profit margin of 2.26%.
Overall, while the gross profit margin has improved, the company's profitability seems to be impacted by operational and financial challenges, as indicated by the fluctuations in operating profit, pretax, and net profit margins. Further analysis of the underlying factors driving these fluctuations would be necessary to provide more insights into Owens & Minor, Inc.'s financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.05% | 2.65% | 10.42% | 6.12% | 2.01% |
| Return on assets (ROA) | -0.81% | 0.42% | 6.27% | 0.90% | -1.71% |
| Return on total capital | 11.17% | 14.78% | 34.61% | 7.96% | 1.50% |
| Return on equity (ROE) | -4.47% | 2.37% | 23.61% | 4.20% | -13.50% |
Based on the provided data for Owens & Minor, Inc., the profitability ratios exhibit varying trends over the past five years.
1. Operating return on assets (Operating ROA):
The Operating ROA has fluctuated over the years, showing a decreasing trend from 11.38% in 2021 to 4.00% in 2023. This ratio indicates the company's ability to generate operating income from its assets, and the recent decline may suggest challenges in efficiently utilizing its assets to generate profits.
2. Return on assets (ROA):
The ROA has been inconsistent, with negative values in 2020 and 2019. In 2023, the ROA decreased significantly to -0.81%, indicating that the company may be experiencing challenges in generating profits from its total assets. This suggests a need for improved asset management and operational efficiency.
3. Return on total capital:
The return on total capital has shown a similar trend to the Operating ROA, with fluctuations over the years. The ratio peaked at 21.34% in 2021, showing a high return on the total invested capital, but declined to 6.74% in 2023. This may indicate changes in the company's capital structure or profitability performance.
4. Return on equity (ROE):
The ROE has also displayed fluctuating trends, with a notable drop from 23.61% in 2021 to -4.47% in 2023. This suggests that the company's ability to generate profits for its shareholders has weakened in the most recent year, possibly due to increased leverage or decreased profitability.
Overall, the profitability ratios of Owens & Minor, Inc. indicate a mixed performance in recent years, with fluctuations in profitability, efficiency, and returns to shareholders. The company may need to focus on optimizing asset utilization, improving profitability, and enhancing returns on both assets and equity to sustain long-term financial health and growth.