Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Anthem Inc., profitability ratios
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
| 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
| 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
| 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
| 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
| 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. |