Select Medical Holdings (SEM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.22% | 13.99% | 11.58% | 14.82% | 14.85% |
| Operating profit margin | 5.17% | 8.33% | 6.37% | 11.50% | 10.26% |
| Pretax margin | 3.37% | 5.74% | 4.11% | 10.15% | 8.25% |
| Net profit margin | 4.13% | 3.65% | 2.51% | 6.48% | 4.68% |
Select Medical Holdings' profitability ratios show fluctuating performance over the years.
1. Gross Profit Margin: The gross profit margin has seen some variability, ranging from 11.58% to 14.85% over the years. It indicates the efficiency of the company in generating profit from its revenue after deducting the cost of goods sold. Although there was a decrease in 2022, the margin recovered in subsequent years, suggesting some stability.
2. Operating Profit Margin: The operating profit margin has also been inconsistent, fluctuating between 5.17% and 11.50%. This ratio signifies the company's ability to control its operating expenses while generating profit. The drop in 2022 might indicate challenges in managing operational costs.
3. Pretax Margin: The pretax margin, which represents the company's profitability before taxes, has shown a similar pattern of volatility, ranging from 3.37% to 10.15%. A lower pretax margin in 2022 could indicate increased tax expenses or lower pre-tax profits during that year.
4. Net Profit Margin: The net profit margin, which reflects the company's bottom-line profitability after all expenses have been deducted, has varied between 2.51% and 6.48%. This ratio is essential as it shows the company's overall profitability, and the fluctuation implies changes in expenses or revenue affecting the bottom line.
In summary, Select Medical Holdings' profitability ratios have demonstrated fluctuations over the years, indicating changes in the company's ability to manage costs, generate revenue, and ultimately, its overall profitability. Further analysis would be needed to understand the specific factors driving these fluctuations and to assess the company's future performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.78% | 7.22% | 5.26% | 9.70% | 7.42% |
| Return on assets (ROA) | 3.82% | 3.17% | 2.07% | 5.46% | 3.38% |
| Return on total capital | 18.04% | 45.10% | 28.80% | 43.00% | 45.04% |
| Return on equity (ROE) | 12.73% | 18.90% | 12.07% | 30.34% | 24.42% |
Select Medical Holdings' profitability ratios suggest fluctuating performance over the years.
- Operating Return on Assets (Operating ROA): Select Medical Holdings has shown an increasing trend in its operating return on assets, rising from 7.42% in 2020 to 9.70% in 2021. However, the ratio declined to 5.26% in 2022 before slightly recovering to 7.22% in 2023 and dropping to 4.78% in 2024. This indicates that the company's operating income generated from its assets has been somewhat inconsistent.
- Return on Assets (ROA): The return on assets ratio also displays a fluctuating pattern, starting at 3.38% in 2020, reaching 5.46% in 2021, dropping to 2.07% in 2022, increasing to 3.17% in 2023, and rising slightly to 3.82% in 2024. This indicates that the company's overall profitability relative to its total assets has varied over the years.
- Return on Total Capital: Select Medical Holdings' return on total capital has been volatile, with a high of 45.10% in 2023 and a low of 18.04% in 2024. The ratio was 45.04% in 2020, decreased to 43.00% in 2021, further dropped to 28.80% in 2022, before rebounding to 45.10% in 2023 and significantly declining to 18.04% in 2024. This indicates that the company's efficiency in generating returns from its total capital has been inconsistent.
- Return on Equity (ROE): The return on equity ratio for Select Medical Holdings has shown a similar fluctuating pattern, starting at 24.42% in 2020, increasing to 30.34% in 2021, dropping to 12.07% in 2022, recovering to 18.90% in 2023, and declining to 12.73% in 2024. This indicates that the company's ability to generate profits from shareholders' equity has been variable.
Overall, Select Medical Holdings' profitability ratios reflect a mix of positive and negative trends, suggesting the need for a careful analysis of the company's financial performance and strategic decisions.