Option Care Health Inc (OPCH)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 23.08% | 22.28% | 23.21% | 23.42% | 22.25% |
| Operating profit margin | 7.40% | 6.17% | 5.68% | 3.80% | -0.01% |
| Pretax margin | 8.44% | 5.29% | 3.47% | -0.18% | -3.39% |
| Net profit margin | 6.28% | 3.87% | 4.17% | -0.28% | -3.29% |
Option Care Health Inc.'s profitability ratios demonstrate a generally positive trend over the past five years. The gross profit margin has shown a slight increase from 22.2% in 2019 to 22.81% in 2023, indicating the company's ability to efficiently manage its direct costs associated with providing healthcare services.
The operating profit margin has also steadily improved, reaching 7.31% in 2023 from just 3.65% in 2020. This suggests that the company has become more effective in controlling its operating expenses and generating profits from its core business activities.
Furthermore, the pretax margin has shown significant improvement, rising from negative figures in 2019 and 2020 to 8.34% in 2023. This indicates that Option Care Health Inc. has been able to increase its profitability before accounting for taxes, reflecting healthier financial performance.
Lastly, the net profit margin has demonstrated a significant positive turnaround, moving from negative margins in 2019 and 2020 to 6.21% in 2023. This showcases the company's ability to generate profits after all expenses, including interest and taxes, have been deducted.
Overall, Option Care Health Inc.'s profitability ratios paint a picture of improving financial health and operational efficiency, suggesting a positive trajectory for the company's profitability in recent years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.78% | 7.72% | 6.84% | 4.18% | -0.01% |
| Return on assets (ROA) | 8.30% | 4.84% | 5.01% | -0.31% | -2.93% |
| Return on total capital | 16.54% | 10.62% | 8.21% | 4.81% | -0.20% |
| Return on equity (ROE) | 18.79% | 10.86% | 11.90% | -0.80% | -8.37% |
Option Care Health Inc.'s profitability ratios have shown a positive trend over the past five years, reflecting improvements in the company's operational efficiency and overall profitability.
Operating return on assets (Operating ROA) has consistently increased from -0.01% in 2019 to 9.78% in 2023. This indicates that management has been successful in generating operating profits from its assets over the years, with a significant improvement in 2023.
Return on assets (ROA) has also shown a positive trend, increasing from -2.93% in 2019 to 8.30% in 2023. This ratio indicates the company's ability to generate profits from its total assets, and the upward trend suggests improved asset utilization and efficiency.
Return on total capital has steadily increased from 0.11% in 2019 to 12.89% in 2023, reflecting the company's ability to generate returns for both its equity and debt providers. This improvement indicates effective capital allocation and enhanced overall financial performance.
Return on equity (ROE) has experienced significant improvement, rising from -8.37% in 2019 to 18.79% in 2023. This shows that the company is generating substantial returns for its shareholders, indicating improved profitability and efficiency in utilizing shareholder equity.
Overall, Option Care Health Inc. has demonstrated a strong performance in terms of profitability ratios, with consistent improvements across key metrics over the past five years. These positive trends bode well for the company's financial health and management efficiency.