AmerisourceBergen Corp. (NYSE:ABC)

The financial data reveals distinct trends and fluctuations across the analyzed periods.

Gross Profit Margin

The gross profit margin shows a generally stable pattern with slight fluctuations over time. Beginning at approximately 2.97% in late 2016 and early 2017, it experienced minor downward adjustments around 2018, dropping to a low near 2.7%. From 2019 onward, it gradually increased, peaking at around 3.59% in late 2021 before slightly retreating to about 3.41-3.42% in mid-2023. This indicates a modest improvement in efficiency in managing production or purchase costs relative to revenues.

Operating Profit Margin

The operating profit margin demonstrated more variability. Initially around 0.69%, it ranged between 0.59% and 0.87% up to early 2020, indicating relatively low but positive operational profitability. However, there was a sharp decline in 2020, with margins turning negative from mid-2020 through most of 2021 (reaching approximately -2.7% to -2.11%). This downturn suggests significant operational challenges or extraordinary costs during that period. Afterward, margins recovered to positive territory around 1.1%, maintaining a narrow band near 0.86%-1.14% through mid-2023, reflecting operational stabilization but at modest profitability levels.

Net Profit Margin

Net profit margin similarly fluctuated, generally reflecting the trends seen in operating profit margin but with slightly less volatility. Starting near 0.24% in 2017, it increased to a peak approaching 0.99% by late 2017, then oscillated downward toward 0.36% by late 2019. In 2020, margins turned negative briefly, coinciding with operating margin declines, before recovering to around 0.7%-0.78% by late 2022 and mid-2023. Overall, net profitability remained modest with clear sensitivity to operating challenges experienced in 2020.

Return on Equity (ROE)

ROE showed substantial volatility, with initial values ranging between 17.66% to highs of 56.55% from 2017 through 2019, indicating strong returns relative to shareholder equity. However, data gaps and extreme outliers appear around 2020 and 2021, including a sharp negative spike (approximately -9862%), which likely reflects extraordinary accounting adjustments or data anomalies. Subsequent periods show improved positive ROE levels, stabilizing between approximately 246.27% and 821.13% by late 2021 and 2022, though such large values suggest careful interpretation is required due to possible distortions. The latest reported figures for mid-2023 approximate 573.99%, still high but potentially reflecting financial restructuring or unique events.

Return on Assets (ROA)

The ROA followed patterns similar to the profit margins. Beginning near 1.03% in early periods, it peaked at about 4.4% in late 2017 before declining to around 1.62% by late 2019. A significant downturn occurred in 2020, with negative values near -7.97%, mirroring operational difficulties evident in other profitability metrics. Recovery ensued from 2021 onward, with ROA advancing back to positive levels near 3.22% to 3.01% through 2022 and mid-2023. This trend suggests asset utilization efficiency was impaired during 2020 but has since improved consistently.

In summary, the data exhibits steady gross profitability with periodic operational and net profit challenges, particularly pronounced in 2020. Profitability ratios were impacted sharply during this year, with recovery observable in subsequent periods. Return measures indicate strong historical financial performance, though extraordinary fluctuations raise caution for interpretation. Asset returns mirror profit margin trends, reinforcing the narrative of a temporary setback followed by gradual restoration of operational and financial effectiveness.

The financial data demonstrates key trends and changes over the reported periods for the company. An analysis of gross profit, revenue, and gross profit margin reveals the following observations:

Gross Profit

Gross profit shows a generally upward trend over the multi-year period, rising from approximately 1,037,680 thousand US dollars at the end of 2016 to a peak near 2,069,411 thousand US dollars by the first quarter of 2021. After this peak, there is some fluctuation but gross profit remains high, staying above 2,000,000 thousand dollars in most subsequent quarters. The trend indicates consistent growth in profitability, with notable acceleration from 2019 onwards.

Revenue

Revenue figures also display long-term growth, increasing from roughly 38.2 billion US dollars at the end of 2016 to nearly 66.9 billion US dollars by the second quarter of 2023. Revenue growth is generally steady but with periodic declines, such as in early 2019 and again in early 2022. Despite these fluctuations, the overall trajectory is upward, indicating expanding business operations and sales volume.

Gross Profit Margin

The gross profit margin, expressed as a percentage, shows a slight but consistent increase over time. Starting near 2.75-2.90% in the earlier periods around 2017 and 2018, it rises gradually to exceed 3.5% in the 2021-2023 timeframe. This improvement in margin suggests enhanced operational efficiency or more favorable pricing strategies contributing to higher profitability on sales.

In summary, the data indicates that the company has successfully increased both its gross profit and revenue across multiple years, accompanied by a gradual improvement in gross profit margin. While some short-term fluctuations are evident, the overall financial performance reflects growth and strengthening profitability.

The analysis of the quarterly financial data reveals several key trends related to operating income, revenue, and operating profit margin over the examined periods.

Operating Income (Loss)

Operating income exhibited significant volatility throughout the quarters. Initial periods show substantial positive values, reaching peaks such as $624,981 thousand in March 2017 and $780,157 thousand in March 2022. Noticeably, there is an extreme negative spike in operating income reported in September 2020, with a loss valued at approximately -$6,113,137 thousand, which marks an outlier in the dataset. Subsequent quarters show a recovery to positive operating income levels, though the values fluctuate. Recent quarters demonstrate a generally positive trend, with operating income maintaining above $450,000 thousand.

Revenue

Revenue figures depict a steady overall increase during the period under review, indicating growth in the company's sales or service volume. From approximately $38.2 billion at the end of 2016, revenue progresses upward, peaking over $66.9 billion by June 2023. Minor decreases or plateaus are observed in some quarters, such as in early 2019 and mid-2021, yet the general trajectory reflects expansion in revenue streams.

Operating Profit Margin

The operating profit margin shows a mixed pattern with mostly positive values until early 2020, ranging around 0.59% to 0.87%. Around the period of the significant operating loss (September 2020), the margin sharply declines to negative values, reaching as low as -2.7%. Post this period, the margin improves and stabilizes to positive but relatively low single-digit percentages, mostly close to or slightly above 1%, suggesting a return to profitability but at lower margins compared to pre-loss levels.

Overall, the data indicates robust revenue growth amid fluctuating profitability levels. The extraordinary operating loss in late 2020 had a considerable impact on profit margins, highlighting a period of operational or financial stress. Recovery in operating income and margins in subsequent quarters suggests effective corrective actions or market recovery. Continuous improvement in revenue supports a positive business outlook despite margin pressures.

The financial data reveals fluctuations in net income and revenue for the reported periods, alongside varying net profit margins. The patterns suggest intermittent volatility with some periods showing losses followed by recoveries.

Net Income (Loss) Trend

Net income exhibits significant volatility, with some substantial positive spikes and notable negative dips. For instance, there is a large loss in the period ending September 30, 2020, indicating a sharp decline relative to previous quarters. Before and after this downturn, net income displayed sizable positive values, indicating a capacity for recovery. The quarters subsequent to this loss show a generally upward trend in net income, reaching improved levels by mid-2023.

Revenue Trend

Revenue shows a generally consistent upward trajectory over time, reflecting growth in the company’s scale or market activity. There are some quarters with slight declines or plateaus, but overall, revenue progresses from approximately $38 billion to over $66 billion within the observed periods. This steady increase in revenue suggests ongoing business expansion despite occasional fluctuations in profitability.

Net Profit Margin Trend

Net profit margin figures begin with positive values near or above 0.5% and show periods of decline to negative margins around 2020, coinciding with the net income losses observed during the same period. The margin hits lows of approximately -1.9%. Following these negative margins, there is a noticeable rebound to near or above 0.7%, demonstrating recovery in profitability. The margins stabilize in more recent quarters, indicating improved operational efficiency or cost management relative to revenue.

In summary, the financial performance is characterized by overall revenue growth accompanied by periods of substantial profit variability. The negative net income and profit margin observed in 2020 indicate a challenging interval, potentially due to extraordinary expenses or adverse market conditions, but this was followed by a recovery phase with improving profitability ratios. The data supports a narrative of a business capable of generating substantial revenue, with profitability subject to external pressures and management responses reflected in varying quarterly results.

The financial analysis over the quarterly periods reveals significant fluctuations in the net income attributable to AmerisourceBergen Corporation, stockholders’ equity, and return on equity (ROE). These fluctuations point to periods of volatility and recovery within the company’s financial performance.

Net Income (Loss) Trends

The net income exhibits pronounced volatility, with some quarters showing robust profitability and others large losses. For instance, the net income peaked at 961 million US dollars during the quarter ending March 31, 2020, followed by a sharp decline with a loss of approximately 4.85 billion USD in the subsequent quarter (June 30, 2020). Thereafter, the net income rebounded to positive figures, consistently ranging between approximately 235 million and 480 million USD in the most recent periods, reflecting a recovery phase after the significant loss.

Stockholders’ Equity Movement

The total stockholders’ equity generally increased from December 2016 (about 2.12 billion USD) to March 2020 (over 3.59 billion USD). However, a drastic contraction occurred in the June 2020 quarter with equity becoming negative, reaching a deficit of approximately -1.02 billion USD. Subsequent quarters show a gradual improvement in equity, moving back towards positive territory, and stabilizing around positive 0.28 to 0.69 billion USD in the latest quarters, although still considerably below the peak values observed before the decline.

Return on Equity (ROE)

ROE displays extreme variability. Prior to 2020, ROE fluctuated within a range of approximately 18% to 57%, indicating generally strong profitability relative to equity. The negative equity recorded in mid-2020 led to extraordinarily negative and aberrant ROE values, with the most extreme recorded at -9862% in one quarter, reflecting the combined impact of large losses and negative equity on this metric. Following this period, ROE stabilized back into highly elevated positive levels, exceeding several hundred percent in various quarters, signaling high returns in relation to the reduced equity base during recovery phases.

Overall, the data suggest a period of financial stress around mid-2020 characterized by substantial losses and negative equity, likely influenced by extraordinary circumstances. Post-crisis, there is evidence of recovery with net income stabilizing to positive levels and equity returning toward positive territory, though not yet reaching prior peak levels. ROE volatility closely follows these trends, reflecting the interplay of net income performance and equity base size.

The analysis of the quarterly financial data reveals several notable trends and patterns in the company's financial performance over the observed periods.

Net Income (Loss) Attributable

The net income figures exhibit significant volatility throughout the periods. Initial quarters show a positive net income, with values such as $247,246 thousand at the end of 2016 and a peak of $861,853 thousand by the end of 2017. However, there is a marked negative spike in the third quarter of 2020, with a substantial loss of approximately $4,846,072 thousand recorded. Following this loss, the net income returns to positive territory, though the values fluctuate around a lower range compared to previous peaks, with figures generally between $200,000 thousand and $500,000 thousand in subsequent quarters. This suggests a period of financial distress followed by recovery but not yet reaching earlier peak performance levels consistently.

Total Assets

Total assets show a general upward trend over the period, indicative of asset growth. Starting from approximately $33,919,272 thousand at the end of 2016, the asset base steadily increases, with some fluctuations, reaching around $61,177,196 thousand by mid-2023. This growth reflects expansion or acquisition activities, indicating the company has been building its asset base significantly over the years despite transient financial setbacks observed in net income.

Return on Assets (ROA)

Return on Assets data, where available, demonstrates a pattern of variability in profitability relative to the asset base. Early values imply moderate profitability, with ROA values around 1.03% to a high of 4.40%. A sharp decline occurs corresponding to the period of large net losses in 2020, where ROA dips into negative territory, reaching approximately -7.97%. Post-2020, the ROA recovers with gradual improvement to positive values, stabilizing around 2.7% to 3.22%. This suggests that while asset utilization efficiency was impacted severely during financial distress, subsequent performance reflects a gradual restoration of operational effectiveness.

Overall, the data indicates the company faced a critical period of financial difficulty around 2020, evident from the large net loss and negative ROA, but assets continued to grow steadily over the entire period. After this challenging phase, profit margins and asset returns improved, suggesting recovery efforts were effective though volatility remains notable in net income figures.