United Therapeutics Corporation (UTHR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 91.26% | 93.74% | 93.77% | 92.71% | 91.88% |
| Operating profit margin | 52.24% | 51.46% | 33.35% | 40.02% | -12.95% |
| Pretax margin | 56.18% | 49.93% | 35.63% | 43.07% | -11.39% |
| Net profit margin | 43.42% | 38.20% | 28.54% | 34.71% | -7.21% |
United Therapeutics Corp has demonstrated strong profitability over the past five years, as evidenced by consistently high gross profit margins ranging from 88.94% to 92.73%. The company's ability to efficiently manage production costs and generate revenue indicates effective operational performance.
The operating profit margin has been relatively stable, ranging from 32.98% to 50.91%, with a slight decline in 2023 compared to the previous year. This implies that the company has been effective in controlling operating expenses while generating operating income.
The pretax margin has shown a positive trend, increasing from 35.24% in 2021 to 54.75% in 2023. This indicates that United Therapeutics Corp has been successful in managing taxes and other expenses, leading to higher profitability before taxes.
The net profit margin has also exhibited an upward trajectory, increasing from 28.23% in 2021 to 42.31% in 2023. This suggests that the company has been efficiently managing interest expenses, taxes, and other costs to maximize net income relative to revenue.
Overall, United Therapeutics Corp's profitability ratios reflect a solid financial performance, with improvements in net profit margin and pretax margin over the years, despite some fluctuations in operating profit margin.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.53% | 16.21% | 10.75% | 12.86% | -4.79% |
| Return on assets (ROA) | 13.74% | 12.03% | 9.20% | 11.15% | -2.67% |
| Return on total capital | 21.22% | 17.50% | 11.68% | 14.15% | -5.55% |
| Return on equity (ROE) | 16.46% | 15.16% | 12.02% | 15.16% | -3.76% |
United Therapeutics Corp has shown improving profitability ratios over the last five years. The Operating Return on Assets (Operating ROA) has steadily increased from 2019 to 2023, reaching 16.53%, indicating the company is efficiently generating operating profits from its assets.
Similarly, the Return on Assets (ROA) has also shown an upward trend, demonstrating the company's ability to generate profits from its total assets, with a ROA of 13.74% in 2023. This signifies that the company is effectively utilizing its assets to generate profits.
The Return on Total Capital has also shown an increasing trend, reaching 17.73% in 2023, indicating that the company is generating higher returns relative to its total capital employed.
Furthermore, the Return on Equity (ROE) has improved consistently over the years, reaching 16.46% in 2023. This indicates that the company is generating strong returns for its shareholders.
Overall, the profitability ratios of United Therapeutics Corp have shown positive trends, indicating the company's improving efficiency in generating profits from its assets, capital, and equity.