Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Cash Flow Statement
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
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Profitability Ratios (Summary)
AmerisourceBergen Corp., profitability ratios
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).
- Gross Profit Margin
- The gross profit margin demonstrated minor fluctuations throughout the observed periods, starting at 2.97% in 2017 and experiencing a slight decline to 2.75% in 2018. It recovered marginally to 2.86% in 2019, but declined again to 2.73% in 2020. Subsequently, there was a noticeable increase to 3.24% in 2021 and further improvement to 3.48% in 2022, indicating strengthened efficiency in managing production costs relative to revenue toward the end of the period.
- Operating Profit Margin
- The operating profit margin showed considerable volatility. It increased initially from 0.69% in 2017 to 0.86% in 2018, then declined to 0.62% in 2019. There was a significant downturn in 2020, with the margin falling to -2.7%, reflecting operational challenges during this period. This negative margin was reversed in 2021 with a return to positive territory at 1.1%, followed by a slight decrease to 0.99% in 2022, indicating partial recovery of operating profitability after the decline in 2020.
- Net Profit Margin
- The net profit margin followed a pattern broadly similar to the operating profit margin, albeit at lower absolute levels. It started modestly at 0.24% in 2017, increased to 0.99% in 2018, then decreased to 0.48% in 2019. A substantial drop into negative territory occurred in 2020 with a margin of -1.8%. The margin experienced a recovery to positive values of 0.72% in 2021 and 0.71% in 2022, suggesting an improvement in overall profitability post-2020 decline.
- Return on Equity (ROE)
- Return on equity exhibited dramatic variability. Starting from 17.66% in 2017, it rose sharply to 56.55% in 2018 and then decreased to 29.71% in 2019. Data for 2020 is missing. There was an exceptionally high spike in 2021 to 689.46%, signaling a potential one-time event or unusual profitability impact in that year. The value for 2022 is not provided, making it difficult to assess the sustainability of this spike.
- Return on Assets (ROA)
- The return on assets showed significant fluctuations across the periods. Beginning at 1.03% in 2017, it increased to 4.4% in 2018 but fell to 2.18% in 2019. A negative return of -7.7% was observed in 2020, consistent with the declines seen in profit margins that year. The ROA recovered to 2.69% in 2021 and further improved to 3% in 2022, indicating a restoration of asset utilization efficiency after the downturn.
Return on Sales
Return on Investment
Gross Profit Margin
AmerisourceBergen Corp., gross profit margin calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Gross profit | |||||||
| Revenue | |||||||
| Profitability Ratio | |||||||
| Gross profit margin1 | |||||||
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Abbott Laboratories | |||||||
| Elevance Health Inc. | |||||||
| Intuitive Surgical Inc. | |||||||
| Medtronic PLC | |||||||
| UnitedHealth Group Inc. | |||||||
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).
1 2022 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenue Analysis
- The revenue demonstrates a consistent upward trajectory over the six-year period. Starting from approximately $153.1 billion in 2017, revenue has increased every year, reaching around $238.6 billion by 2022. This indicates steady growth and expanding business operations.
- Gross Profit Analysis
- Gross profit also exhibits a positive trend, rising from roughly $4.55 billion in 2017 to about $8.30 billion in 2022. Notably, the increase in gross profit is more pronounced in the latter years, particularly between 2020 and 2022, suggesting improvements in cost management or pricing strategies.
- Gross Profit Margin Analysis
- The gross profit margin percentage fluctuates modestly across the years. It started at 2.97% in 2017, experienced a dip to 2.73% in 2020, but has generally trended upwards since, reaching 3.48% in 2022. The margin expansion over the last two years points towards enhanced profitability on revenue generated.
- Overall Insights
- The data reflects sustained growth in both revenue and gross profit, coupled with a gradual improvement in gross profit margin. This suggests increasing operational efficiency and an ability to convert a higher proportion of revenue into gross profit. The company's financial performance appears robust, with no evident signs of decline in the periods analyzed.
Operating Profit Margin
AmerisourceBergen Corp., operating profit margin calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Operating income (loss) | |||||||
| Revenue | |||||||
| Profitability Ratio | |||||||
| Operating profit margin1 | |||||||
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Abbott Laboratories | |||||||
| Elevance Health Inc. | |||||||
| Intuitive Surgical Inc. | |||||||
| Medtronic PLC | |||||||
| UnitedHealth Group Inc. | |||||||
| Operating Profit Margin, Sector | |||||||
| Health Care Equipment & Services | |||||||
| Operating Profit Margin, Industry | |||||||
| Health Care | |||||||
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).
1 2022 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenue Trend
- The revenue exhibited a consistent upward trajectory from 2017 through 2022. Beginning at approximately $153.1 billion in 2017, revenue increased annually to reach about $238.6 billion by 2022. This represents a substantial growth over the six-year period, indicating the company's expanding scale of operations and market penetration.
- Operating Income (Loss) Fluctuations
- Operating income demonstrated notable volatility across the years analyzed. From 2017 to 2019, operating income increased from around $1.06 billion to approximately $1.44 billion, before declining to about $1.11 billion in 2019. A significant downturn occurred in 2020, with operating income reporting a substantial loss of approximately $5.14 billion. This loss was followed by a recovery in 2021 and 2022, with operating income rising to roughly $2.35 billion and $2.37 billion, respectively. These fluctuations suggest episodic challenges or one-time events impacting operational profitability, especially in 2020.
- Operating Profit Margin Analysis
- The operating profit margin mirrored the trends observed in operating income, showing volatility during the period. It was modest but positive from 2017 to 2019, ranging from 0.62% to 0.86%. In 2020, the margin turned sharply negative at -2.7%, corresponding with the significant operating loss that year. Subsequently, the margin returned to positive territory in 2021 and 2022 at 1.1% and 0.99%, respectively, although still below the pre-2020 levels. The negative margin in 2020 underscores substantial operational challenges affecting efficiency and profitability during that year.
- Overall Insights
- The data reveals a company experiencing robust revenue growth concomitant with considerable volatility in profitability metrics. The pronounced operating loss and negative margin in 2020 signify a period of operational difficulty, potentially linked to extraordinary circumstances during that fiscal year. Despite this setback, the company demonstrated resilience by achieving recovery in operating income and margin in the subsequent years, though margins have not fully returned to the pre-2020 peak levels. Continuous monitoring of operating efficiency is advisable to sustain profitability alongside revenue expansion.
Net Profit Margin
AmerisourceBergen Corp., net profit margin calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income (loss) attributable to AmerisourceBergen Corporation | |||||||
| Revenue | |||||||
| Profitability Ratio | |||||||
| Net profit margin1 | |||||||
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Abbott Laboratories | |||||||
| Elevance Health Inc. | |||||||
| Intuitive Surgical Inc. | |||||||
| Medtronic PLC | |||||||
| UnitedHealth Group Inc. | |||||||
| Net Profit Margin, Sector | |||||||
| Health Care Equipment & Services | |||||||
| Net Profit Margin, Industry | |||||||
| Health Care | |||||||
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).
1 2022 Calculation
Net profit margin = 100 × Net income (loss) attributable to AmerisourceBergen Corporation ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenue
- The company exhibited a consistent upward trend in revenue over the examined period. Starting at approximately $153.1 billion in 2017, revenue increased steadily each year, reaching $238.6 billion by 2022. This reflects robust growth and expansion in the company's operations or market presence, with the largest annual increments observed in the later years.
- Net Income (Loss) Attributable
- Net income displayed considerable volatility during the period. After a significant increase from $364 million in 2017 to about $1.66 billion in 2018, net income declined to $855 million in 2019. The year 2020 marked a substantial loss of approximately $3.41 billion, indicating a significant adverse event or operational challenge. This was followed by a recovery in 2021 and 2022, with net income returning to positive territory at around $1.54 billion and $1.70 billion respectively.
- Net Profit Margin
- Profitability, as measured by net profit margin, mirrored the fluctuations observed in net income. The margin increased from 0.24% in 2017 to a peak of 0.99% in 2018, then decreased to 0.48% in 2019. In 2020, the margin turned negative at -1.8%, consistent with the net loss reported that year. Recovery occurred in 2021 and 2022, with profit margins stabilizing near 0.7%, reflecting a return to modest profitability despite ongoing revenue growth.
- Summary
- Overall, the financial data indicate strong revenue growth accompanied by fluctuating profitability. The substantial loss in 2020 stands out as an anomaly in an otherwise positive earnings trend, suggesting an extraordinary event or disruption. Following this setback, the company restored profitability, albeit with relatively low net profit margins compared to earlier years. The year-to-year variations highlight challenges in maintaining consistent profitability despite expanding revenues.
Return on Equity (ROE)
AmerisourceBergen Corp., ROE calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income (loss) attributable to AmerisourceBergen Corporation | |||||||
| Total AmerisourceBergen Corporation stockholders’ equity (deficit) | |||||||
| Profitability Ratio | |||||||
| ROE1 | |||||||
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Abbott Laboratories | |||||||
| Elevance Health Inc. | |||||||
| Intuitive Surgical Inc. | |||||||
| Medtronic PLC | |||||||
| UnitedHealth Group Inc. | |||||||
| ROE, Sector | |||||||
| Health Care Equipment & Services | |||||||
| ROE, Industry | |||||||
| Health Care | |||||||
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).
1 2022 Calculation
ROE = 100 × Net income (loss) attributable to AmerisourceBergen Corporation ÷ Total AmerisourceBergen Corporation stockholders’ equity (deficit)
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to AmerisourceBergen Corporation
- The net income exhibited significant volatility over the analyzed periods. Initially, there was a notable increase from 364,484 thousand USD in 2017 to 1,658,405 thousand USD in 2018, followed by a decline to 855,365 thousand USD in 2019. In 2020, the company experienced a substantial loss of 3,408,716 thousand USD. However, profitability was restored in the subsequent years, with positive net incomes of 1,539,932 thousand USD in 2021 and 1,698,820 thousand USD in 2022, indicating a recovery trend post-2020 losses.
- Total Stockholders’ Equity (Deficit)
- Stockholders’ equity showed an increasing trend from 2,064,461 thousand USD in 2017 to a peak of 2,932,824 thousand USD in 2018. There was a slight decline in 2019, down to 2,878,917 thousand USD. The year 2020 marked a dramatic shift, with equity turning negative to -1,018,924 thousand USD, reflecting financial strain. This negative equity condition persisted, albeit improving slightly, with values of 223,354 thousand USD in 2021 and deteriorating again to -211,559 thousand USD in 2022, suggesting ongoing challenges in maintaining equity stability.
- Return on Equity (ROE)
- ROE demonstrated considerable variability, starting at 17.66% in 2017 and surging to 56.55% in 2018, suggesting high profitability relative to equity at that time. It decreased to 29.71% in 2019, after which data is unavailable for 2020. In 2021, ROE spiked dramatically to 689.46%, likely influenced by the low or negative equity base during this period. There is no reported data for 2022, which may correlate with the continued challenges in equity positioning.
Return on Assets (ROA)
AmerisourceBergen Corp., ROA calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income (loss) attributable to AmerisourceBergen Corporation | |||||||
| Total assets | |||||||
| Profitability Ratio | |||||||
| ROA1 | |||||||
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Abbott Laboratories | |||||||
| Elevance Health Inc. | |||||||
| Intuitive Surgical Inc. | |||||||
| Medtronic PLC | |||||||
| UnitedHealth Group Inc. | |||||||
| ROA, Sector | |||||||
| Health Care Equipment & Services | |||||||
| ROA, Industry | |||||||
| Health Care | |||||||
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).
1 2022 Calculation
ROA = 100 × Net income (loss) attributable to AmerisourceBergen Corporation ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Trend
- The net income attributable to the company showed significant fluctuation over the analyzed periods. Starting from a positive value of approximately 364 million in 2017, there was a remarkable increase in 2018 reaching over 1.65 billion. In 2019, net income decreased but remained positive at approximately 855 million. The year 2020 experienced a substantial downturn with a net loss of about 3.41 billion, marking a significant negative financial event. Subsequent years show a recovery with positive net incomes of approximately 1.54 billion in 2021 and 1.70 billion in 2022, indicating a return to profitability.
- Total Assets Evolution
- Total assets increased steadily from 35.3 billion in 2017 to a peak of 57.3 billion in 2021. Although there was a slight contraction in total assets to about 56.6 billion in 2022, the overall trend across the six-year period is one of considerable asset growth, suggesting expansion or acquisition activities and increased asset base.
- Return on Assets (ROA) Performance
- Return on Assets mirrored the fluctuations seen in net income. Starting at a modest 1.03% in 2017, ROA increased significantly to 4.4% in 2018, indicating improved profitability relative to assets. The 2019 figure showed a decline to 2.18%. In 2020, ROA dropped sharply to -7.7%, reflecting the net loss situation. Following this, ROA recovered to 2.69% in 2021 and further improved to 3% in 2022, consistent with the restoration of profitability.
- Summary Insights
- The company experienced an overall growth in asset base during the period. Profitability measures displayed volatility, with a notable financial setback in 2020 that was followed by recovery in subsequent years. The sharp loss in 2020 substantially impacted ROA and net income, but recovery suggests effective measures to return to positive financial performance. The trends demonstrate resilience and an ability to rebound post-adversity, with the asset growth supporting ongoing operations and potential strategic initiatives.