Operating Profit Margin
since 2005
Calculation
Express Scripts Holding Co., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2017 | 5.49% | = | 100 | × | 5,494,000) | ÷ | 100,064,600) |
| Dec 31, 2016 | 5.07% | = | 100 | × | 5,087,800) | ÷ | 100,287,500) |
| Dec 31, 2015 | 4.26% | = | 100 | × | 4,339,300) | ÷ | 101,751,800) |
| Dec 31, 2014 | 3.57% | = | 100 | × | 3,602,400) | ÷ | 100,887,100) |
| Dec 31, 2013 | 3.41% | = | 100 | × | 3,551,700) | ÷ | 104,098,800) |
| Dec 31, 2012 | 2.97% | = | 100 | × | 2,784,500) | ÷ | 93,858,100) |
| Dec 31, 2011 | 5.02% | = | 100 | × | 2,314,400) | ÷ | 46,128,300) |
| Dec 31, 2010 | 4.60% | = | 100 | × | 2,070,900) | ÷ | 44,973,200) |
| Dec 31, 2009 | 6.05% | = | 100 | × | 1,498,400) | ÷ | 24,748,900) |
| Dec 31, 2008 | 5.83% | = | 100 | × | 1,280,500) | ÷ | 21,978,000) |
| Dec 31, 2007 | 5.81% | = | 100 | × | 1,061,000) | ÷ | 18,273,600) |
| Dec 31, 2006 | 4.67% | = | 100 | × | 824,100) | ÷ | 17,660,000) |
| Dec 31, 2005 | 3.95% | = | 100 | × | 643,000) | ÷ | 16,266,000) |
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), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
Between 2005 and 2017, the company experienced a consistent increase in absolute operating income, though the operating profit margin exhibited significant volatility. While operating income grew from US$ 643 million in 2005 to US$ 5.49 billion in 2017, the margin percentage fluctuated in response to rapid expansions in total revenue.
- Initial Growth and Margin Expansion
- From 2005 to 2009, a steady upward trend in profitability is observed. During this period, the operating profit margin rose from 3.95% to a peak of 6.05%, coinciding with moderate revenue growth from US$ 16.27 billion to US$ 24.75 billion.
- Revenue Spikes and Margin Compression
- A period of significant margin compression occurred between 2010 and 2012. Despite a massive increase in revenues—which jumped from US$ 44.97 billion in 2010 to US$ 93.86 billion in 2012—the operating profit margin declined sharply, reaching a low of 2.97% in 2012. This suggests that the rapid scaling of the business initially outpaced the growth of operating efficiency.
- Operational Stabilization and Recovery
- Starting in 2013, a recovery trend in the operating profit margin is evident. As revenues stabilized around the US$ 100 billion mark, the margin climbed steadily from 3.41% in 2013 to 5.49% in 2017. This trajectory indicates an improvement in operational leverage and cost management after the period of aggressive revenue expansion.
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Comparison to Competitors
Express Scripts Holding Co., operating profit margin, long-term trends, comparison to competitors
| Express Scripts Holding Co. | Abbott Laboratories | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2017 | 5.49% | 6.30% | 33.71% | 17.94% | 7.60% |
| Dec 31, 2016 | 5.07% | 15.27% | 34.95% | 18.35% | 7.03% |
| Dec 31, 2015 | 4.26% | 14.05% | 31.04% | 18.59% | 7.05% |
| Dec 31, 2014 | 3.57% | 12.84% | 25.56% | 22.42% | 7.92% |
| Dec 31, 2013 | 3.41% | 12.03% | 37.64% | 26.53% | 7.90% |
| Dec 31, 2012 | 2.97% | 20.28% | 40.30% | 0.00% | 8.42% |
| Dec 31, 2011 | 5.02% | 14.81% | 39.54% | 0.00% | 8.36% |
| Dec 31, 2010 | 4.60% | 17.31% | 39.29% | 0.00% | 8.41% |
| Dec 31, 2009 | 6.05% | 20.27% | 35.87% | 0.00% | 7.35% |
| Dec 31, 2008 | 5.83% | 19.28% | 35.53% | 0.00% | 6.54% |
| Dec 31, 2007 | 5.81% | 17.67% | 34.41% | 0.00% | 10.57% |
| Dec 31, 2006 | 4.67% | 9.09% | 28.81% | 0.00% | 9.88% |
| Dec 31, 2005 | 3.95% | 19.53% | 30.25% | 0.00% | 11.98% |
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), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).