Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Express Scripts Holding Co., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
The analysis of the quarterly financial ratios reveals distinct trends over the observed periods.
- Net Fixed Asset Turnover
-
This ratio showed a generally increasing trend from March 2014 through September 2018, starting at 61.33 and rising to 206.46 by the end of the period. Notably, the trend was relatively stable and gradually increasing up until December 2017, after which there was a significant jump between December 2017 and March 2018. The ratio nearly doubled in that quarter and continued to rise afterward, indicating a marked improvement in the company's efficiency in using fixed assets to generate sales during the latter part of the observed period.
- Total Asset Turnover
-
This ratio was relatively stable throughout the entire period, fluctuating narrowly between 1.83 and 2.00. Small variations suggest consistent overall asset utilization in revenue generation, without significant improvement or deterioration. There was a slight peak around the middle of 2016, but values returned close to initial levels subsequently.
- Equity Turnover
-
The equity turnover ratio exhibited some variability, initially increasing from 4.65 in March 2014 to a peak of 6.85 in March 2016. Following this peak, a gradual decline was observed, falling to 4.93 by September 2018. This pattern may reflect changes in how effectively the company used shareholders' equity to generate sales, with efficiency peaking mid-period and then decreasing towards the end.
Net Fixed Asset Turnover
Express Scripts Holding Co., net fixed asset turnover calculation (quarterly data)
| Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Revenues | 25,563,200) | 25,641,800) | 24,769,400) | 25,378,800) | 24,683,400) | 25,347,500) | 24,654,900) | 24,863,300) | 25,410,100) | 25,222,300) | 24,791,800) | 26,175,400) | 25,222,600) | 25,454,200) | 24,899,600) | 26,312,600) | 25,778,500) | 25,111,000) | 23,685,000) | ||||||
| Property and equipment, net | 490,900) | 504,700) | 552,900) | 551,300) | 1,266,600) | 1,255,200) | 1,277,800) | 1,273,600) | 1,255,500) | 1,249,100) | 1,259,700) | 1,291,300) | 1,343,100) | 1,411,900) | 1,510,200) | 1,584,000) | 1,639,900) | 1,644,100) | 1,659,400) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Net fixed asset turnover1 | 206.46 | 199.08 | 181.19 | 181.51 | 78.60 | 79.89 | 78.38 | 78.74 | 80.92 | 81.19 | 80.69 | 78.80 | 75.86 | 72.56 | 67.61 | 63.69 | 61.20 | 61.12 | 61.33 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| Abbott Laboratories | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q3 2018 Calculation
Net fixed asset turnover
= (RevenuesQ3 2018
+ RevenuesQ2 2018
+ RevenuesQ1 2018
+ RevenuesQ4 2017)
÷ Property and equipment, net
= (25,563,200 + 25,641,800 + 24,769,400 + 25,378,800)
÷ 490,900 = 206.46
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the analyzed periods, particularly in revenues, property and equipment values, and net fixed asset turnover ratios.
- Revenues
- Revenues exhibit a fluctuating but generally stable pattern across the quarters. Starting from approximately 23.7 billion US dollars in the first quarter of 2014, revenues increase gradually, peaking intermittently throughout the years. Despite some quarter-to-quarter volatility, the values mostly range between 24.6 billion and 26.3 billion US dollars. There is no clear sustained upward or downward trend, indicating relatively consistent sales or service income during the period.
- Property and Equipment, Net
- The net value of property and equipment shows a pronounced declining trend over time. Beginning at about 1.66 billion US dollars in early 2014, this asset value steadily decreases throughout the subsequent quarters, reaching roughly 490 million US dollars by the third quarter of 2018. This impact is especially sharp during the final year observed. The significant reduction suggests disposal, depreciation, or possible asset reclassification, pointing to a declining investment in fixed assets or accelerated write-offs.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates a consistent and marked increase during the period under review. Starting from a ratio near 61 in early 2014, it climbs steadily each quarter, reaching an exceptionally high value exceeding 206 by late 2018. This indicates that the company increasingly generates more revenue per unit of net fixed assets. The surge in this ratio aligns with the substantial decrease in property and equipment values, implying improved asset utilization efficiency or potentially leaner fixed asset management.
In summary, while revenues show relative stability, the company has significantly reduced its net property and equipment holdings, concurrently achieving a substantial improvement in net fixed asset turnover. This pattern suggests enhanced operational efficiency in asset use or a strategic shift away from capital-intensive resource holdings.
Total Asset Turnover
Express Scripts Holding Co., total asset turnover calculation (quarterly data)
| Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Revenues | 25,563,200) | 25,641,800) | 24,769,400) | 25,378,800) | 24,683,400) | 25,347,500) | 24,654,900) | 24,863,300) | 25,410,100) | 25,222,300) | 24,791,800) | 26,175,400) | 25,222,600) | 25,454,200) | 24,899,600) | 26,312,600) | 25,778,500) | 25,111,000) | 23,685,000) | ||||||
| Total assets | 55,441,600) | 54,677,800) | 53,405,600) | 54,255,800) | 51,206,200) | 50,513,400) | 51,056,000) | 51,744,900) | 50,909,300) | 50,858,600) | 51,107,600) | 53,243,300) | 51,996,500) | 51,867,800) | 51,905,100) | 53,798,900) | 53,439,200) | 54,633,800) | 52,747,100) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Total asset turnover1 | 1.83 | 1.84 | 1.88 | 1.84 | 1.94 | 1.99 | 1.96 | 1.94 | 2.00 | 1.99 | 1.99 | 1.91 | 1.96 | 1.98 | 1.97 | 1.88 | 1.88 | 1.84 | 1.93 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| Abbott Laboratories | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q3 2018 Calculation
Total asset turnover
= (RevenuesQ3 2018
+ RevenuesQ2 2018
+ RevenuesQ1 2018
+ RevenuesQ4 2017)
÷ Total assets
= (25,563,200 + 25,641,800 + 24,769,400 + 25,378,800)
÷ 55,441,600 = 1.83
2 Click competitor name to see calculations.
- Revenues
- The revenue figures demonstrate a pattern of moderate fluctuations over the analyzed periods. Starting at approximately $23.7 billion in the first quarter of 2014, revenues generally increased through the end of that year, peaking near $26.3 billion. This was followed by a slight decline in the first quarter of 2015 and relatively stable performance throughout 2015 and 2016, with values fluctuating between roughly $24.7 billion and $26 billion. Entering 2017 and 2018, revenues continued to oscillate around the mid-$24 billion to mid-$25 billion range, with no clear upward or downward long-term trend.
- Total Assets
- Total assets displayed some variability over time. Beginning at about $52.7 billion in early 2014, the asset base grew modestly through the middle of 2014 but then exhibited a gradual decline toward the end of 2015 and into 2016, reaching a low near $50.8 billion. Toward the latter part of the series, especially in 2017 and 2018, there was a notable uptick in total assets to above $54 billion, indicating some recovery or possibly asset acquisitions. Overall, the total asset base fluctuated within a range approximately between $50.5 billion and $54.5 billion.
- Total Asset Turnover
- The total asset turnover ratio remained relatively stable throughout the observed timeframe, generally hovering between 1.83 and 2.00. Early 2014 saw ratios close to 1.9, with a peak near 2.00 during 2016, indicating efficient use of assets to generate revenues at that time. In 2017 and 2018, the ratio slightly declined again, remaining around 1.83 to 1.88, suggesting a moderate decrease in efficiency in asset utilization relative to revenue generation during those periods. The consistent ratio around the mid-to-high 1.8x to 2.0x range indicates a relatively steady operational efficiency in asset use over these years.
- Overall Patterns and Insights
- The overall analysis reveals that revenues and total assets moved within limited ranges without significant long-term directional change. Revenue exhibited typical quarterly variation but lacked strong growth trend, while total assets demonstrated a dip followed by recovery. The total asset turnover ratio’s stability indicates that the company maintained fairly consistent asset utilization efficiency despite the shifts in total asset levels and revenues. This suggests effective management of resources despite some external or internal factors influencing revenue and asset base variations.
Equity Turnover
Express Scripts Holding Co., equity turnover calculation (quarterly data)
| Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Revenues | 25,563,200) | 25,641,800) | 24,769,400) | 25,378,800) | 24,683,400) | 25,347,500) | 24,654,900) | 24,863,300) | 25,410,100) | 25,222,300) | 24,791,800) | 26,175,400) | 25,222,600) | 25,454,200) | 24,899,600) | 26,312,600) | 25,778,500) | 25,111,000) | 23,685,000) | ||||||
| Total Express Scripts stockholders’ equity | 20,565,900) | 19,370,000) | 18,442,500) | 18,119,600) | 15,916,500) | 15,744,600) | 15,922,600) | 16,236,000) | 15,600,300) | 15,403,100) | 14,841,100) | 17,372,800) | 16,538,300) | 15,822,200) | 20,604,800) | 20,054,200) | 20,157,700) | 20,451,900) | 21,874,300) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Equity turnover1 | 4.93 | 5.19 | 5.43 | 5.52 | 6.25 | 6.37 | 6.29 | 6.18 | 6.51 | 6.58 | 6.85 | 5.86 | 6.16 | 6.47 | 4.96 | 5.03 | 4.98 | 4.91 | 4.65 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||
| Abbott Laboratories | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Elevance Health Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuitive Surgical Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Medtronic PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| UnitedHealth Group Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q3 2018 Calculation
Equity turnover
= (RevenuesQ3 2018
+ RevenuesQ2 2018
+ RevenuesQ1 2018
+ RevenuesQ4 2017)
÷ Total Express Scripts stockholders’ equity
= (25,563,200 + 25,641,800 + 24,769,400 + 25,378,800)
÷ 20,565,900 = 4.93
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the observed quarters in terms of revenues, stockholders’ equity, and equity turnover ratios.
- Revenues
- The revenue figures demonstrate a pattern of moderate fluctuations throughout the periods analyzed. Revenues increased from approximately 23.7 billion US dollars in the first quarter of 2014 to a peak of around 26.3 billion US dollars at the end of 2014. Subsequently, the revenue levels exhibited some variability but generally remained within a range between approximately 24.5 billion and 25.7 billion US dollars. Toward the last reported quarters in 2018, revenues appear to have slightly increased, reaching just over 25.5 billion US dollars by the third quarter of 2018.
- Total Express Scripts Stockholders’ Equity
- The stockholders’ equity showed a declining trend beginning from about 21.9 billion US dollars at the start of 2014 to a low point near 14.8 billion US dollars by the first quarter of 2016. After this decline, equity values began to recover steadily, reaching approximately 20.6 billion US dollars by the third quarter of 2018. This recovery follows a period of equity deterioration possibly reflecting financial adjustments, share repurchases, or other equity impacts during 2014 to 2016, with a subsequent stabilization and growth phase.
- Equity Turnover Ratio
- The equity turnover ratio, which measures revenues relative to stockholders’ equity, generally increased from 4.65 at the beginning of 2014, peaking around 6.85 in early 2016. This increase corresponds with declining equity and relatively stable revenues, indicating higher efficiency in generating revenues per unit of equity during this period. However, following this peak, the ratio steadily fell to about 4.93 by the third quarter of 2018. This decline suggests that although equity capital was recovering, revenue growth did not keep pace proportionally, thus reducing turnover efficiency.
In summary, the company experienced a revenue plateau with moderate growth, a significant decrease in stockholders’ equity followed by a recovery, and corresponding fluctuations in equity turnover. The peak in efficiency during 2016 was driven largely by lower equity levels rather than significant revenue expansion. The subsequent phase shows an improving equity base with relatively stable revenues, leading to a gradual reduction in turnover ratio.