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Express Scripts Holding Co. (NASDAQ:ESRX)

This company has been moved to the archive! The financial data has not been updated since October 31, 2018.

Common-Size Income Statement

Express Scripts Holding Co., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Revenues 100.00 100.00 100.00 100.00 100.00
Cost of revenues -91.24 -91.40 -91.74 -92.14 -92.19
Gross profit 8.76% 8.60% 8.26% 7.86% 7.81%
Selling, general and administrative -3.27 -3.52 -3.99 -4.28 -4.40
Operating income 5.49% 5.07% 4.26% 3.57% 3.41%
Interest income and other 0.04 0.03 0.02 0.05 0.07
Interest expense and other -0.61 -0.69 -0.49 -0.58 -0.57
Other income (expense) -0.56% -0.66% -0.47% -0.53% -0.50%
Income before income taxes 4.93% 4.41% 3.80% 3.04% 2.91%
Provision for income taxes -0.40 -1.00 -1.34 -1.02 -1.06
Net income from continuing operations 4.53% 3.42% 2.46% 2.02% 1.85%
Net loss from discontinued operations, net of tax 0.00 0.00 0.00 0.00 -0.05
Net income 4.53% 3.42% 2.46% 2.02% 1.80%
Net income attributable to non-controlling interest -0.01 -0.02 -0.02 -0.03 -0.03
Net income attributable to Express Scripts 4.51% 3.39% 2.43% 1.99% 1.77%

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

A consistent improvement in overall profitability is evident over the five-year period from 2013 to 2017. The expansion of net income attributable to the company from 1.77% to 4.51% of revenues reflects a combined effect of cost reductions and improved operational efficiency.

Gross Profitability Trends
Gross profit margins experienced a steady increase, rising from 7.81% in 2013 to 8.76% in 2017. This growth was driven by a gradual decrease in the cost of revenues, which fell from 92.19% to 91.24% over the analyzed period.
Operating Efficiency
Selling, general, and administrative expenses showed a consistent downward trend, decreasing from 4.40% of revenues in 2013 to 3.27% in 2017. This reduction in overhead costs contributed significantly to the expansion of the operating margin, which grew from 3.41% to 5.49%.
Non-Operating and Tax Factors
Interest expenses remained relatively stable, fluctuating between 0.49% and 0.69% of revenues. A notable shift occurred in the provision for income taxes, which dropped significantly to 0.40% in 2017 from 1.00% in 2016, contributing to the acceleration of net income growth in the final year.
Net Income Progression
The net income attributable to the company grew consistently each year, moving from 1.77% in 2013 to 4.51% in 2017. The growth trajectory was steady through 2016, with a sharper increase observed in 2017, mirroring the combined impact of increased operating income and lower tax provisions.

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