Stock Analysis on Net
Stock Analysis on Net

AmerisourceBergen Corp. (NYSE:ABC)

This company has been moved to the archive! The financial data has not been updated since August 2, 2023.

Common-Size Income Statement

AmerisourceBergen Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017
Revenue 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -96.52 -96.76 -97.27 -97.14 -97.25 -97.03
Gross profit 3.48% 3.24% 2.73% 2.86% 2.75% 2.97%
Distribution, selling, and administrative -2.03 -1.68 -1.46 -1.48 -1.46 -1.39
Depreciation -0.16 -0.15 -0.15 -0.16 -0.17 -0.15
Amortization -0.13 -0.08 -0.06 -0.09 -0.11 -0.10
Litigation and opioid-related expenses -0.05 -0.13 -3.54 -0.18 -0.11 -0.63
Acquisition, integration, and restructuring expenses -0.08 -0.09 -0.04 0.00 0.00 0.00
Goodwill impairment -0.03 0.00 0.00 0.00 -0.04 0.00
Impairment of assets 0.00 -0.01 -0.19 -0.32 0.00 0.00
Operating expenses -2.49% -2.14% -5.44% -2.24% -1.89% -2.28%
Operating income (loss) 0.99% 1.10% -2.70% 0.62% 0.86% 0.69%
Other income (loss), net 0.01 0.02 0.00 0.01 -0.02 0.00
Interest expense -0.10 -0.09 -0.08 -0.11 -0.11 -0.10
Interest income 0.01 0.00 0.01 0.02 0.01 0.00
Interest expense, net -0.09% -0.08% -0.07% -0.09% -0.10% -0.09%
Loss on consolidation of equity investments 0.00 0.00 0.00 0.00 -0.03 0.00
Loss on early retirement of debt 0.00 0.00 -0.01 0.00 -0.01 0.00
Income (loss) before income taxes 0.91% 1.04% -2.79% 0.54% 0.70% 0.60%
Income tax (expense) benefit -0.22 -0.32 1.00 -0.06 0.26 -0.36
Net income (loss) 0.70% 0.72% -1.79% 0.48% 0.96% 0.24%
Net (income) loss attributable to noncontrolling interests 0.01 0.00 0.00 0.00 0.03 0.00
Net income (loss) attributable to AmerisourceBergen Corporation 0.71% 0.72% -1.80% 0.48% 0.99% 0.24%

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

The financial performance from 2017 to 2022 is characterized by a low-margin business model with significant volatility in operating results driven primarily by non-recurring legal expenses. While gross margins have shown steady improvement in recent years, this progress has been partially offset by rising administrative costs and a substantial one-time impact in 2020.

Gross Margin Analysis
The cost of goods sold constitutes the vast majority of total revenue, fluctuating between 96.52% and 97.27%. A gradual improvement in gross profit is evident, rising from 2.97% in 2017 to a peak of 3.48% in 2022. This indicates a modest increase in the company's ability to maintain a spread between procurement costs and sales prices over the analyzed period.
Operating Expense Trends
Distribution, selling, and administrative expenses have demonstrated a consistent upward trend, increasing from 1.39% of revenue in 2017 to 2.03% in 2022. This growth in overhead suggests rising operational costs that have largely eroded the gains achieved in gross profit. Depreciation and amortization remained relatively stable, consistently representing less than 0.30% of total revenue.
Impact of Non-Recurring Items
The fiscal year 2020 represents a significant outlier due to litigation and opioid-related expenses, which surged to 3.54% of revenue, compared to a range of 0.05% to 0.63% in other years. This spike was the primary driver for the operating loss of 2.70% recorded in 2020. Additionally, impairment of assets and goodwill impairment appeared sporadically, though their impact remained minimal relative to total revenue.
Operating and Net Profitability
Operating income remained positive and relatively stable between 0.62% and 1.10% for most of the period, excluding the 2020 loss. Net income attributable to the corporation followed a similar pattern, recovering from a loss of 1.80% in 2020 to approximately 0.71% in 2022. The impact of interest expense, net, remained marginal and consistent, fluctuating between 0.07% and 0.11% of revenue.

Overall, the analysis reveals a company operating in a high-volume, low-margin environment. The recovery in net profit margins following the 2020 litigation spike suggests a return to operational stability, although the increasing trajectory of distribution and administrative expenses warrants continued monitoring.

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