Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Reportable Segments
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
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Profitability Ratios (Summary)
Express Scripts Holding Co., profitability ratios
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).
- Gross Profit Margin
- The gross profit margin exhibited a steady upward trend over the five-year period, increasing from 7.81% in 2013 to 8.76% in 2017. This consistent improvement suggests enhanced efficiency in managing the cost of goods sold relative to revenue.
- Operating Profit Margin
- Operating profit margin showed a notable rise, moving from 3.41% in 2013 to 5.49% in 2017. The growth indicates improved operational efficiency and better control over operating expenses, contributing positively to overall profitability.
- Net Profit Margin
- There was a significant increase in net profit margin, from 1.77% to 4.51% during the observed timeframe. This substantial growth highlights improved bottom-line profitability, likely driven by both operational improvements and possibly financial management or tax strategies.
- Return on Equity (ROE)
- Return on equity demonstrated a strong upward trajectory, climbing from 8.45% in 2013 to 24.93% in 2017. This suggests that the company’s ability to generate profit from shareholders’ equity has greatly strengthened, reflecting efficient use of invested capital.
- Return on Assets (ROA)
- Return on assets also increased significantly from 3.44% to 8.33% over the period. The upward trend indicates more effective utilization of the company’s assets to generate earnings, underscoring operational improvements and asset management.
Return on Sales
Return on Investment
Gross Profit Margin
Express Scripts Holding Co., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Gross profit | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
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).
1 2017 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Gross Profit
- The gross profit exhibited a relatively stable trend over the five-year period. Beginning at approximately $8.13 billion in 2013, it decreased slightly in 2014 to about $7.93 billion. Subsequently, it showed a recovery and consistent growth, reaching $8.40 billion in 2015, $8.62 billion in 2016, and $8.76 billion in 2017. This indicates a moderate increase in the company's ability to generate profit after accounting for the cost of goods sold.
- Revenues
- Revenues demonstrated a gradual decline overall. Starting from around $104.1 billion in 2013, revenues decreased each year with minor fluctuations. By 2014, revenues dropped to approximately $100.9 billion, slightly increased to $101.75 billion in 2015, but then decreased again to $100.29 billion in 2016 and further to $100.06 billion in 2017. This suggests that sales or service income has experienced a modest downward trend during the period analyzed.
- Gross Profit Margin
- The gross profit margin steadily increased from 7.81% in 2013 to 8.76% in 2017, indicating improved efficiency or better pricing power relative to the cost of goods sold. The margin rose slightly to 7.86% in 2014, then moved up more significantly to 8.26% in 2015, followed by incremental increases to 8.60% in 2016 and 8.76% in 2017. This trend suggests enhanced profitability in terms of gross profit relative to revenue despite the slight decline in overall revenues.
Operating Profit Margin
Express Scripts Holding Co., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
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).
1 2017 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data displays a clear upward trend in operating income over the five-year period observed. Beginning at approximately 3.55 billion US dollars in 2013, operating income steadily increased each year, reaching about 5.49 billion US dollars by the end of 2017. This represents significant growth in operating income, indicating improved profitability from core business operations.
Revenues, on the other hand, exhibit a slight downward trend during the same timeframe. Starting from roughly 104.1 billion US dollars in 2013, revenues declined marginally each year to approximately 100.1 billion US dollars by 2017. Although the decrease is moderate, the overall decline suggests some challenges in maintaining or growing total sales or service volumes.
The operating profit margin demonstrates a consistent improvement through the years reviewed. Beginning at a relatively low 3.41% in 2013, the margin increased annually to reach 5.49% in 2017. This rising margin reflects enhanced operational efficiency or cost management, leading to a larger proportion of revenues translating into operating profits.
- Operating Income
- Exhibited steady growth, increasing from approximately 3.55 billion to 5.49 billion US dollars over five years.
- Revenues
- Showed a modest decline, decreasing from about 104.1 billion to 100.1 billion US dollars, indicating slight revenue contraction.
- Operating Profit Margin
- Increased progressively from 3.41% to 5.49%, suggesting improving profitability and operational efficiency.
Net Profit Margin
Express Scripts Holding Co., net profit margin calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Express Scripts | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
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).
1 2017 Calculation
Net profit margin = 100 × Net income attributable to Express Scripts ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- The net income attributable to the company demonstrated a consistent upward trend over the five-year period. Starting at $1,844,600 thousand at the end of 2013, it progressively increased each year, reaching $4,517,400 thousand by the end of 2017. This represents a substantial growth in profitability.
- Revenues
- The revenue figures exhibit a slight fluctuation, remaining relatively stable but showing a minor downward trend. Revenues peaked at $104,098,800 thousand in 2013 and generally declined to $100,064,600 thousand by 2017, indicating a modest contraction in total sales over the period.
- Net Profit Margin
- The net profit margin showed a significant improvement over the years. Starting at 1.77% in 2013, it rose steadily each year to reach 4.51% in 2017. This increase in margin suggests improved operational efficiency or cost management, contributing to enhanced overall profitability despite stable or slightly declining revenues.
Return on Equity (ROE)
Express Scripts Holding Co., ROE calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Express Scripts | ||||||
| Total Express Scripts stockholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
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).
1 2017 Calculation
ROE = 100 × Net income attributable to Express Scripts ÷ Total Express Scripts stockholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income Attributable to Express Scripts
- The net income experienced a consistent upward trend from 2013 to 2017. It increased from $1,844,600 thousand in 2013 to $4,517,400 thousand in 2017, reflecting more than a twofold growth over the five-year period. This denotes a strong and sustained improvement in profitability.
- Total Express Scripts Stockholders’ Equity
- Contrary to the upward trend in net income, total stockholders’ equity showed a declining trajectory from 2013 until 2016, decreasing from $21,837,400 thousand to $16,236,000 thousand. However, in 2017, equity rose again to $18,119,600 thousand. This pattern may indicate share repurchases, dividend payments, or other capital structure adjustments during the earlier years, with partial recovery in the final year.
- Return on Equity (ROE)
- ROE demonstrated a significant increase from 8.45% in 2013 to 24.93% in 2017. This sharp growth reflects enhanced efficiency in generating earnings relative to shareholders' equity. The upward trend implies improved profitability and management effectiveness in utilizing equity capital over the period.
- Overall Analysis
- The company's financial performance over the five-year span reveals a robust increase in profitability as evidenced by rising net income and ROE. Despite a reduction in total stockholders’ equity through 2016, the strong profitability gains suggest effective capital management and operational success. The rebound in equity in 2017 points to strategic financial adjustments. Collectively, the data indicate a positive and strengthening financial position with increasing returns to equity holders.
Return on Assets (ROA)
Express Scripts Holding Co., ROA calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Express Scripts | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
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).
1 2017 Calculation
ROA = 100 × Net income attributable to Express Scripts ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income Attributable to Express Scripts
- The net income exhibited a consistent and significant upward trend over the five-year period. Starting at 1,844,600 thousand USD in 2013, it increased steadily each year, reaching 4,517,400 thousand USD in 2017. This represents more than a doubling of net income, indicating strong profitability growth.
- Total Assets
- The total assets showed relative stability with minor fluctuations throughout the period. The asset base was approximately 53,548,200 thousand USD in 2013, experienced a slight increase and decrease in subsequent years, and ended slightly higher at 54,255,800 thousand USD in 2017. This indicates a relatively stable capital structure with no significant expansions or contractions in asset base.
- Return on Assets (ROA)
- ROA rose consistently from 3.44% in 2013 to 8.33% in 2017, demonstrating improved efficiency in using assets to generate profits. The steady increase in ROA aligns with the growth in net income and stable asset levels, reflecting enhanced operational performance and profitability over the period.