Profitability Analysis
Difficulty: Beginner
Profitability ratios measure the company's ability to generate profitable sales from its resources (assets).
Ratios (Summary)
Express Scripts Holding Co., profitability ratios
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Return on Sales | ||||||
| | Gross profit margin | 8.76% | 8.60% | 8.26% | 7.86% | 7.81% |
| | Operating profit margin | 5.49% | 5.07% | 4.26% | 3.57% | 3.41% |
| | Net profit margin | 4.51% | 3.39% | 2.43% | 1.99% | 1.77% |
| Return on Investment | ||||||
| | Return on equity (ROE) | 24.93% | 20.97% | 14.25% | 10.01% | 8.45% |
| | Return on assets (ROA) | 8.33% | 6.58% | 4.65% | 3.73% | 3.44% |
Source: Based on data from Express Scripts Holding Co. Annual Reports
| Ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Express Scripts Holding Co.'s gross profit margin improved from 2015 to 2016 and from 2016 to 2017. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Express Scripts Holding Co.'s operating profit margin improved from 2015 to 2016 and from 2016 to 2017. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Express Scripts Holding Co.'s net profit margin improved from 2015 to 2016 and from 2016 to 2017. |
| ROE | A profitability ratio calculated as net income divided by shareholders' equity. | Express Scripts Holding Co.'s ROE improved from 2015 to 2016 and from 2016 to 2017. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Express Scripts Holding Co.'s ROA improved from 2015 to 2016 and from 2016 to 2017. |
Gross Profit Margin
Express Scripts Holding Co., gross profit margin calculation
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in thousands) | ||||||
| | Gross profit | 8,762,100 | 8,620,500 | 8,401,900 | 7,925,100 | 8,132,400 |
| | Revenues | 100,064,600 | 100,287,500 | 101,751,800 | 100,887,100 | 104,098,800 |
| Ratio | ||||||
| | Gross profit margin1 | 8.76% | 8.60% | 8.26% | 7.86% | 7.81% |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors | ||||||
| Medtronic PLC | 68.73% | 68.29% | 68.86% | 74.52% | 75.13% | |
| Stryker Corp. | 65.68% | 66.18% | 66.38% | 65.98% | 67.00% | |
| Thermo Fisher Scientific Inc. | 45.15% | 45.80% | 45.72% | 44.36% | 42.24% | |
| UnitedHealth Group Inc. | 22.98% | 23.13% | 23.22% | 25.18% | 24.33% | |
Source: Based on data from Express Scripts Holding Co. Annual Reports
2017 Calculations
1 Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 8,762,100 ÷ 100,064,600 = 8.76%
| Ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Express Scripts Holding Co.'s gross profit margin improved from 2015 to 2016 and from 2016 to 2017. |
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 (USD $ in thousands) | ||||||
| | Operating income | 5,494,000 | 5,087,800 | 4,339,300 | 3,602,400 | 3,551,700 |
| | Revenues | 100,064,600 | 100,287,500 | 101,751,800 | 100,887,100 | 104,098,800 |
| Ratio | ||||||
| | Operating profit margin1 | 5.49% | 5.07% | 4.26% | 3.57% | 3.41% |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors | ||||||
| Medtronic PLC | 17.94% | 18.35% | 18.59% | 22.42% | 26.53% | |
| Stryker Corp. | 18.40% | 19.13% | 18.71% | 12.88% | 13.92% | |
| Thermo Fisher Scientific Inc. | 14.19% | 13.40% | 13.77% | 14.82% | 12.30% | |
| UnitedHealth Group Inc. | 7.60% | 7.03% | 7.05% | 7.92% | 7.90% | |
| Operating Profit Margin, Sector | ||||||
| Health Care Equipment & Services | 8.61% | 8.15% | 7.64% | 7.82% | 7.73% | |
| Operating Profit Margin, Industry | ||||||
| Health Care | 16.14% | 17.70% | 17.41% | 16.88% | 16.25% | |
Source: Based on data from Express Scripts Holding Co. Annual Reports
2017 Calculations
1 Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 5,494,000 ÷ 100,064,600 = 5.49%
| Ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Express Scripts Holding Co.'s operating profit margin improved from 2015 to 2016 and from 2016 to 2017. |
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 (USD $ in thousands) | ||||||
| | Net income attributable to Express Scripts | 4,517,400 | 3,404,400 | 2,476,400 | 2,007,600 | 1,844,600 |
| | Revenues | 100,064,600 | 100,287,500 | 101,751,800 | 100,887,100 | 104,098,800 |
| Ratio | ||||||
| | Net profit margin1 | 4.51% | 3.39% | 2.43% | 1.99% | 1.77% |
| Benchmarks | ||||||
| Net Profit Margin, Competitors | ||||||
| Medtronic PLC | 13.56% | 12.27% | 13.20% | 18.02% | 20.90% | |
| Stryker Corp. | 8.20% | 14.54% | 14.47% | 5.32% | 11.15% | |
| Thermo Fisher Scientific Inc. | 10.64% | 11.06% | 11.64% | 11.22% | 9.73% | |
| UnitedHealth Group Inc. | 5.28% | 3.81% | 3.72% | 4.33% | 4.62% | |
| Net Profit Margin, Sector | ||||||
| Health Care Equipment & Services | 6.15% | 5.14% | 4.71% | 4.78% | 5.00% | |
| Net Profit Margin, Industry | ||||||
| Health Care | 8.69% | 14.91% | 14.07% | 13.46% | 13.91% | |
Source: Based on data from Express Scripts Holding Co. Annual Reports
2017 Calculations
1 Net profit margin = 100 × Net income attributable to Express Scripts ÷ Revenues
= 100 × 4,517,400 ÷ 100,064,600 = 4.51%
| Ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Express Scripts Holding Co.'s net profit margin improved from 2015 to 2016 and from 2016 to 2017. |
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 (USD $ in thousands) | ||||||
| | Net income attributable to Express Scripts | 4,517,400 | 3,404,400 | 2,476,400 | 2,007,600 | 1,844,600 |
| | Total Express Scripts stockholders' equity | 18,119,600 | 16,236,000 | 17,372,800 | 20,054,200 | 21,837,400 |
| Ratio | ||||||
| | ROE1 | 24.93% | 20.97% | 14.25% | 10.01% | 8.45% |
| Benchmarks | ||||||
| ROE, Competitors | ||||||
| Medtronic PLC | 8.01% | 6.80% | 5.03% | 15.76% | 18.57% | |
| Stryker Corp. | 10.23% | 17.25% | 16.91% | 5.99% | 11.12% | |
| Thermo Fisher Scientific Inc. | 8.76% | 9.39% | 9.25% | 9.22% | 7.55% | |
| UnitedHealth Group Inc. | 22.10% | 18.33% | 17.18% | 17.31% | 17.50% | |
| ROE, Sector | ||||||
| Health Care Equipment & Services | 14.74% | 12.81% | 10.71% | 12.96% | 13.41% | |
| ROE, Industry | ||||||
| Health Care | 12.09% | 20.08% | 17.51% | 18.41% | 18.69% | |
Source: Based on data from Express Scripts Holding Co. Annual Reports
2017 Calculations
1 ROE = 100 × Net income attributable to Express Scripts ÷ Total Express Scripts stockholders' equity
= 100 × 4,517,400 ÷ 18,119,600 = 24.93%
| Ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders' equity. | Express Scripts Holding Co.'s ROE improved from 2015 to 2016 and from 2016 to 2017. |
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 (USD $ in thousands) | ||||||
| | Net income attributable to Express Scripts | 4,517,400 | 3,404,400 | 2,476,400 | 2,007,600 | 1,844,600 |
| | Total assets | 54,255,800 | 51,744,900 | 53,243,300 | 53,798,900 | 53,548,200 |
| Ratio | ||||||
| | ROA1 | 8.33% | 6.58% | 4.65% | 3.73% | 3.44% |
| Benchmarks | ||||||
| ROA, Competitors | ||||||
| Medtronic PLC | 4.04% | 3.55% | 2.51% | 8.08% | 9.95% | |
| Stryker Corp. | 4.60% | 8.06% | 8.86% | 2.91% | 6.39% | |
| Thermo Fisher Scientific Inc. | 3.93% | 4.40% | 4.83% | 4.42% | 4.00% | |
| UnitedHealth Group Inc. | 7.59% | 5.71% | 5.22% | 6.50% | 6.87% | |
| ROA, Sector | ||||||
| Health Care Equipment & Services | 6.01% | 5.17% | 4.38% | 5.49% | 6.07% | |
| ROA, Industry | ||||||
| Health Care | 4.69% | 8.14% | 7.43% | 8.24% | 8.60% | |
Source: Based on data from Express Scripts Holding Co. Annual Reports
2017 Calculations
1 ROA = 100 × Net income attributable to Express Scripts ÷ Total assets
= 100 × 4,517,400 ÷ 54,255,800 = 8.33%
| Ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Express Scripts Holding Co.'s ROA improved from 2015 to 2016 and from 2016 to 2017. |