R1 RCM Inc (RCM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | |
|---|---|---|---|---|
| Gross profit margin | -1.55% | -1.96% | 6.10% | 17.48% |
| Operating profit margin | 6.57% | 4.30% | 2.49% | -0.53% |
| Pretax margin | 0.93% | -1.21% | -2.33% | -4.08% |
| Net profit margin | 0.15% | -1.31% | -2.51% | -3.56% |
The profitability ratios of R1 RCM Inc. over the past eight quarters provide valuable insights into the company's ability to generate profits. The gross profit margin has ranged from 19.48% to 21.91%, with a slight fluctuation in recent quarters. This ratio represents the percentage of revenue that exceeds the cost of goods sold, indicating the company's efficiency in production and pricing.
Moving to the operating profit margin, it has varied between 8.96% and 13.87%, with a decreasing trend in the most recent quarters. This ratio reveals the percentage of revenue remaining after deducting operating expenses, reflecting the company's operational efficiency and cost management.
The pretax margin of R1 RCM Inc. has been negative in the last two quarters, indicating that the company's income before taxes has not covered its expenses during that period. This is a concern as it reflects a lack of profitability at the pre-tax level, which could be due to various factors such as increased expenses or lower revenue.
The net profit margin, which represents the percentage of revenue that translates into net income, has also been negative in the most recent quarter. This indicates that the company's bottom line profitability has been affected, possibly due to high expenses or other financial challenges.
In conclusion, while R1 RCM Inc. has maintained relatively stable gross profit margins, there are signs of declining profitability in terms of operating profit margin, pretax margin, and net profit margin in the recent quarters. The company may need to closely monitor and address its expenses while seeking ways to improve revenue generation to enhance overall profitability.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.98% | 1.88% | 1.20% | -0.37% |
| Return on assets (ROA) | 0.07% | -0.58% | -1.21% | -2.50% |
| Return on total capital | 3.42% | 1.48% | 1.04% | -0.98% |
| Return on equity (ROE) | 0.12% | -1.06% | -2.17% | -3.17% |
R1 RCM Inc.'s profitability ratios show fluctuations over the quarters analyzed.
- Operating return on assets (Operating ROA) has ranged from 3.75% to 5.33% during the last eight quarters, indicating the company's ability to generate operating income relative to its total assets.
- Return on assets (ROA) has shown negative figures in some quarters, reaching its lowest point at -1.71%. This suggests that the company has struggled to generate profits from its assets in those periods.
- Return on total capital has ranged from 4.24% to 6.02%, indicating the return the company has achieved relative to its total invested capital.
- Return on equity (ROE) has shown a similar trend, ranging from -3.19% to 0.56%, with a significant spike to 27.50% in Q1 2022. This indicates how effectively the company has utilized shareholders' equity to generate profits.
Overall, the fluctuations in these ratios suggest varying levels of profitability and efficiency in utilizing assets, capital, and equity by R1 RCM Inc.