Option Care Health Inc (OPCH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.27% | 22.81% | 21.98% | 22.67% | 22.50% |
| Operating profit margin | 6.44% | 7.31% | 6.09% | 5.55% | 3.65% |
| Pretax margin | 5.67% | 8.34% | 5.22% | 3.39% | -0.17% |
| Net profit margin | 4.24% | 6.21% | 3.82% | 4.07% | -0.27% |
Option Care Health Inc has shown consistency in its gross profit margins over the years, ranging from 20.27% to 22.81%. This indicates that the company is effectively managing its production costs and maintaining a stable level of profitability before considering operating expenses.
In terms of operating profit margins, there has been a gradual improvement from 3.65% in 2020 to 6.44% in 2024. This suggests that the company has been able to control its operating expenses more efficiently and generate higher profits from its core operations.
The pretax margin of Option Care Health Inc has shown significant growth over the years, starting at -0.17% in 2020 and reaching 8.34% in 2023. This indicates a strong performance in generating profits before accounting for taxes.
Lastly, the net profit margin has ranged from -0.27% to 6.21%, showing fluctuations in profitability after accounting for all expenses, including taxes. Although there was an increase in profitability from 2020 to 2023, the net profit margin dropped slightly in 2024.
Overall, Option Care Health Inc has demonstrated improvements in its profitability ratios over the years, with efficient management of costs and a stronger performance in generating profits.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.41% | 9.78% | 7.72% | 6.84% | 4.18% |
| Return on assets (ROA) | 6.19% | 8.30% | 4.84% | 5.01% | -0.31% |
| Return on total capital | 23.69% | 29.61% | 18.81% | 14.62% | 8.46% |
| Return on equity (ROE) | 15.08% | 18.79% | 10.86% | 11.90% | -0.80% |
Option Care Health Inc's profitability ratios have shown improvement over the years based on the provided data.
1. Operating return on assets (Operating ROA) has increased consistently from 4.18% in December 31, 2020, to 9.41% in December 31, 2024. This indicates the company's ability to generate profits from its operations relative to its total assets has been on an upward trend.
2. Return on assets (ROA) has also shown a positive trend, starting from a negative figure of -0.31% in December 31, 2020, and reaching 6.19% in December 31, 2024. This ratio reflects the company's efficiency in utilizing its assets to generate profits.
3. Return on total capital has seen significant growth, starting at 8.46% in December 31, 2020, and reaching 23.69% by December 31, 2024. This indicates the company's ability to generate returns for both the equity and debt holders.
4. Return on equity (ROE) has also shown improvement, moving from -0.80% in December 31, 2020, to 15.08% by December 31, 2024. This ratio reflects the company's ability to generate profits for its shareholders from the equity investments made in the company.
Overall, the improving trend in these profitability ratios suggests that Option Care Health Inc has been successful in enhancing its operational efficiency and generating higher returns for its investors over the years.