United Therapeutics Corporation (UTHR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 89.24% | 88.94% | 92.42% | 92.73% | 92.71% |
| Operating profit margin | 47.86% | 50.91% | 50.60% | 32.98% | 40.02% |
| Pretax margin | 53.49% | 54.75% | 49.09% | 35.24% | 43.07% |
| Net profit margin | 41.53% | 42.31% | 37.56% | 28.23% | 34.71% |
United Therapeutics Corporation has demonstrated consistently high gross profit margins over the past five years, with figures ranging from 88.94% to 92.73%. This suggests that the company effectively controls its production costs and generates a significant profit from its sales.
In terms of operating profit margin, there has been some fluctuation in the margins, with the lowest figure observed in 2021 at 32.98% and the highest in 2022 at 50.60%. Despite the variability, the company has generally maintained healthy operating margins, indicating efficient management of operating expenses.
The pretax margin for United Therapeutics Corporation has shown a positive trend, increasing from 35.24% in 2021 to 54.75% in 2023 before slightly decreasing to 53.49% in 2024. This suggests that the company efficiently manages its income and expenses before accounting for taxes, leading to a higher proportion of pre-tax profits.
Lastly, the net profit margins have also displayed a generally upward trend, from 28.23% in 2021 to 41.53% in 2024. This indicates the company's ability to generate profits after considering all expenses, including taxes, highlighting strong overall profitability performance.
Overall, United Therapeutics Corporation's profitability ratios reflect a financially sound business with effective cost control measures and an ability to generate substantial profits relative to its revenue.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.70% | 16.53% | 16.21% | 10.75% | 12.86% |
| Return on assets (ROA) | 16.23% | 13.74% | 12.03% | 9.20% | 11.15% |
| Return on total capital | 24.55% | 22.28% | 20.62% | 17.35% | 17.57% |
| Return on equity (ROE) | 18.55% | 16.46% | 15.16% | 12.02% | 15.16% |
United Therapeutics Corporation's profitability ratios show a positive trend over the years. The Operating Return on Assets (Operating ROA) decreased from 12.86% in December 2020 to 10.75% in December 2021 but then significantly improved, reaching 18.70% by December 2024. The Return on Assets (ROA) also exhibited growth, increasing from 11.15% in December 2020 to 16.23% by December 2024. Furthermore, the Return on Total Capital increased consistently from 17.57% in December 2020 to 24.55% by December 2024. The Return on Equity (ROE) showed a similar upward trajectory, rising from 15.16% in December 2020 to 18.55% in December 2024. These ratios indicate that the company efficiently utilizes its assets and capital to generate profits for its shareholders, reflecting improved overall financial performance.