Stock Analysis on Net

Anthem Inc. (NYSE:ANTM)

Analysis of Profitability Ratios 

Microsoft Excel LibreOffice Calc

Profitability Ratios (Summary)

Anthem Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Return on Sales
Gross profit margin 17.09% 19.71% 18.77% 21.29% 18.89%
Operating profit margin 5.15% 4.97% 5.49% 5.55% 4.50%
Net profit margin 4.46% 3.78% 4.66% 4.11% 4.31%
Return on Investment
Return on equity (ROE) 16.93% 13.77% 15.15% 13.14% 14.50%
Return on assets (ROA) 6.26% 5.28% 6.21% 5.24% 5.45%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Anthem Inc. gross profit margin ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Anthem Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Anthem Inc. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Anthem Inc. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
ROA A profitability ratio calculated as net income divided by total assets. Anthem Inc. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Gross Profit Margin

Anthem Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Gross profit 23,403  23,810  19,363  19,446  16,825 
Operating revenue 136,943  120,808  103,141  91,341  89,061 
Profitability Ratio
Gross profit margin1 17.09% 19.71% 18.77% 21.29% 18.89%
Benchmarks
Gross Profit Margin, Competitors2
Abbott Laboratories 52.21% 50.49% 52.46% 51.32% 47.75%
Bristol-Myers Squibb Co. 78.57% 72.31% 69.10% 70.98% 70.80%
CVS Health Corp. 17.48% 18.01% 17.41% 15.92% 15.45%
Danaher Corp. 60.95% 55.98% 55.74% 55.83% 55.61%
HCA Healthcare Inc. 83.86% 83.76% 83.48% 83.45% 83.23%
Intuitive Surgical Inc. 69.32% 65.65% 69.45% 69.92% 70.12%
Medtronic PLC 65.19% 67.41% 70.04% 69.77% 68.73%
Stryker Corp. 64.11% 63.11% 65.14% 65.72% 65.68%
UnitedHealth Group Inc. 23.60% 25.62% 23.19% 23.33% 22.98%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Gross profit margin = 100 × Gross profit ÷ Operating revenue
= 100 × 23,403 ÷ 136,943 = 17.09%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Anthem Inc. gross profit margin ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Operating Profit Margin

Anthem Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Operating income 7,048  5,999  5,661  5,068  4,007 
Operating revenue 136,943  120,808  103,141  91,341  89,061 
Profitability Ratio
Operating profit margin1 5.15% 4.97% 5.49% 5.55% 4.50%
Benchmarks
Operating Profit Margin, Competitors2
Abbott Laboratories 19.56% 15.48% 14.21% 11.94% 6.30%
Bristol-Myers Squibb Co. 15.91% -21.60% 22.62% 22.69% 17.39%
CVS Health Corp. 4.54% 5.19% 4.69% 2.07% 5.15%
Danaher Corp. 25.35% 18.99% 18.25% 17.11% 16.48%
HCA Healthcare Inc. 19.23% 14.08% 14.10% 15.15% 13.91%
Intuitive Surgical Inc. 31.89% 24.09% 30.69% 32.21% 33.71%
Medtronic PLC 14.89% 16.57% 20.51% 22.20% 17.94%
Stryker Corp. 15.10% 15.49% 18.23% 18.65% 18.40%
UnitedHealth Group Inc. 8.40% 8.76% 8.19% 7.71% 7.60%
Operating Profit Margin, Sector
Health Care Equipment & Services 9.29% 6.89% 8.84% 8.28% 8.24%
Operating Profit Margin, Industry
Health Care 15.89% 11.60% 13.99% 13.54% 14.31%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Operating profit margin = 100 × Operating income ÷ Operating revenue
= 100 × 7,048 ÷ 136,943 = 5.15%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Anthem Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Net Profit Margin

Anthem Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Shareholders’ net income 6,104  4,572  4,807  3,750  3,843 
Operating revenue 136,943  120,808  103,141  91,341  89,061 
Profitability Ratio
Net profit margin1 4.46% 3.78% 4.66% 4.11% 4.31%
Benchmarks
Net Profit Margin, Competitors2
Abbott Laboratories 16.42% 12.99% 11.56% 7.74% 1.74%
Bristol-Myers Squibb Co. 15.08% -21.20% 13.15% 21.81% 4.85%
CVS Health Corp. 2.72% 2.68% 2.59% -0.31% 3.58%
Danaher Corp. 21.84% 16.36% 16.80% 13.33% 13.60%
HCA Healthcare Inc. 11.84% 7.28% 6.83% 8.11% 5.08%
Intuitive Surgical Inc. 29.85% 24.33% 30.80% 30.29% 21.09%
Medtronic PLC 11.97% 16.56% 15.16% 10.36% 13.56%
Stryker Corp. 11.66% 11.14% 13.99% 26.12% 8.20%
UnitedHealth Group Inc. 6.06% 6.03% 5.76% 5.33% 5.28%
Net Profit Margin, Sector
Health Care Equipment & Services 7.00% 4.45% 6.06% 5.41% 5.23%
Net Profit Margin, Industry
Health Care 13.10% 8.28% 11.35% 9.92% 7.96%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Net profit margin = 100 × Shareholders’ net income ÷ Operating revenue
= 100 × 6,104 ÷ 136,943 = 4.46%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Anthem Inc. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Return on Equity (ROE)

Anthem Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Shareholders’ net income 6,104  4,572  4,807  3,750  3,843 
Shareholders’ equity 36,060  33,199  31,728  28,541  26,503 
Profitability Ratio
ROE1 16.93% 13.77% 15.15% 13.14% 14.50%
Benchmarks
ROE, Competitors2
Abbott Laboratories 19.75% 13.71% 11.86% 7.76% 1.54%
Bristol-Myers Squibb Co. 19.46% -23.84% 6.66% 35.07% 8.58%
CVS Health Corp. 10.54% 10.35% 10.39% -1.02% 17.57%
Danaher Corp. 14.24% 9.17% 9.94% 9.40% 9.45%
HCA Healthcare Inc. 656.29%
Intuitive Surgical Inc. 14.32% 10.90% 16.69% 16.89% 13.97%
Medtronic PLC 7.01% 9.44% 9.25% 6.12% 8.01%
Stryker Corp. 13.40% 12.22% 16.26% 30.29% 10.23%
UnitedHealth Group Inc. 24.09% 23.52% 24.02% 23.19% 22.10%
ROE, Sector
Health Care Equipment & Services 17.52% 10.63% 14.05% 13.31% 13.77%
ROE, Industry
Health Care 26.01% 16.24% 22.46% 19.68% 14.77%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
ROE = 100 × Shareholders’ net income ÷ Shareholders’ equity
= 100 × 6,104 ÷ 36,060 = 16.93%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Anthem Inc. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Return on Assets (ROA)

Anthem Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Shareholders’ net income 6,104  4,572  4,807  3,750  3,843 
Total assets 97,460  86,615  77,453  71,571  70,540 
Profitability Ratio
ROA1 6.26% 5.28% 6.21% 5.24% 5.45%
Benchmarks
ROA, Competitors2
Abbott Laboratories 9.40% 6.20% 5.43% 3.53% 0.63%
Bristol-Myers Squibb Co. 6.40% -7.61% 2.65% 14.06% 3.00%
CVS Health Corp. 3.39% 3.11% 2.98% -0.30% 6.96%
Danaher Corp. 7.73% 4.79% 4.85% 5.54% 5.34%
HCA Healthcare Inc. 13.71% 7.90% 7.78% 9.66% 6.06%
Intuitive Surgical Inc. 12.58% 9.50% 14.17% 14.37% 11.46%
Medtronic PLC 3.87% 5.28% 5.16% 3.40% 4.04%
Stryker Corp. 5.76% 4.66% 6.90% 13.05% 4.60%
UnitedHealth Group Inc. 8.15% 7.81% 7.96% 7.87% 7.59%
ROA, Sector
Health Care Equipment & Services 6.59% 3.88% 5.18% 4.98% 5.26%
ROA, Industry
Health Care 9.27% 5.37% 7.53% 6.82% 5.35%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
ROA = 100 × Shareholders’ net income ÷ Total assets
= 100 × 6,104 ÷ 97,460 = 6.26%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Anthem Inc. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.