Privia Health Group Inc (PRVA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 10.19% | 9.74% | 9.93% | 6.59% | 10.11% |
| Operating profit margin | 0.98% | 1.25% | -1.41% | -22.50% | 3.11% |
| Pretax margin | 1.61% | 1.75% | -1.37% | -22.61% | 2.87% |
| Net profit margin | 0.83% | 1.39% | -0.89% | -19.73% | 3.82% |
Privia Health Group Inc's profitability ratios have shown fluctuations over the past five years. The gross profit margin decreased from 10.11% in 2020 to 6.59% in 2021, before recovering to 10.19% by the end of 2024. This indicates a fluctuating trend in the company's ability to generate profits after accounting for the cost of goods sold.
The operating profit margin deteriorated significantly from 3.11% in 2020 to -22.50% in 2021, reflecting operational challenges leading to losses. However, there was a gradual improvement in subsequent years, with the margin reaching 0.98% in 2024, indicating some recovery in operational efficiency.
Similarly, the pretax margin experienced a sharp decline from 2.87% in 2020 to -22.61% in 2021, indicating substantial pre-tax losses. However, there was a gradual improvement in profitability, reaching 1.61% by the end of 2024, although it remained below the 2020 level.
The net profit margin also displayed a downward trend, falling from 3.82% in 2020 to -19.73% in 2021. The margin improved slightly in the following years, reaching 0.83% in 2024. This suggests that while the company managed to reduce losses, its net profitability remained relatively low compared to the starting point in 2020.
Overall, Privia Health Group Inc's profitability ratios indicate a challenging period in 2021, followed by a gradual recovery in subsequent years, albeit not yet returning to the initial profitability levels observed in 2020. The company may need to focus on enhancing operational efficiency and cost management to sustain and improve its profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.50% | 2.07% | -2.41% | -31.68% | 7.72% |
| Return on assets (ROA) | 1.27% | 2.31% | -1.52% | -27.78% | 9.50% |
| Return on total capital | 2.67% | 3.68% | -3.83% | -50.94% | 17.29% |
| Return on equity (ROE) | 2.26% | 4.11% | -2.42% | -44.66% | 21.29% |
Based on the provided data, Privia Health Group Inc's profitability ratios show fluctuations over the five-year period analyzed.
1. Operating Return on Assets (Operating ROA):
- In 2020, the Operating ROA was 7.72%, indicating that the company generated a positive return on its operating assets.
- However, in 2021 and 2022, the Operating ROA turned negative at -31.68% and -2.41% respectively, suggesting operational inefficiencies or losses.
- The trend improved slightly in 2023 and 2024 with positive Operating ROA figures of 2.07% and 1.50%, though still below the 2020 level.
2. Return on Assets (ROA):
- ROA in 2020 was 9.50%, reflecting a decent return on total assets.
- Subsequently, ROA turned negative in 2021 (-27.78%) and 2022 (-1.52%), possibly indicating challenges in generating profits from the company's assets.
- By 2023 and 2024, the ROA improved to 2.31% and 1.27% respectively, but remained below the initial level in 2020.
3. Return on Total Capital:
- In 2020, the Return on Total Capital was 17.29%, representing a healthy return to capital providers.
- However, this ratio turned significantly negative in 2021 (-50.94%) and 2022 (-3.83%), indicative of potential financial difficulties or inefficiencies.
- The return improved in 2023 (3.68%) and 2024 (2.67%), but it was still lower than the 2020 level.
4. Return on Equity (ROE):
- ROE was at 21.29% in 2020, demonstrating a solid return to equity holders.
- However, ROE sharply declined in 2021 (-44.66%) and 2022 (-2.42%), indicating a decrease in profitability relative to shareholders' equity.
- The ratio improved to 4.11% in 2023 and 2.26% in 2024, but remained below the initial level in 2020.
Overall, the profitability ratios of Privia Health Group Inc show a mixed performance, with fluctuations in returns on different measures over the five-year period. It is essential for stakeholders to monitor these ratios closely to assess the company's financial health and performance accurately.