Centene(Cnc) Financials: Net Profit Margin Compared To Industry Average, Plus Other Key Ratios
Company Report for CNC
Report - net profit margin
This chart shows the historical trend of net profit margin for CNC compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Net Profit Margin
Definition: Net profit margin shows how much profit remains after paying all costs — including operating expenses, interest, and taxes — for every dollar of sales. A higher margin means the business is efficient and keeps more of its sales as bottom-line profit. Falling margins may signal rising costs or pricing pressure.
Interpretation:
• In '2021', CNC's net profit margin was 1.1%, measuring the overall profitability of the company. Industry average for Medical Specialities in '2021' stood at -40.2%.
• In '2022', CNC's net profit margin was 0.8%, measuring the overall profitability of the company. The decline from '2021' may indicate some operational or financial challenges. Industry average for Medical Specialities in '2022' stood at -56.4%. Industry average declined by 16.1% from previous year.
• In '2023', CNC's net profit margin was 1.8%, measuring the overall profitability of the company. The increase since '2022' reflects strengthening financial performance. Industry average for Medical Specialities in '2023' stood at -42.4%. Industry average increased by 14.0% compared to previous year.
• In '2024', CNC's net profit margin was 2.0%, measuring the overall profitability of the company. The increase since '2023' reflects strengthening financial performance. Industry average for Medical Specialities in '2024' stood at -16.5%. Industry average increased by 25.9% compared to previous year.
Overall, CNC's net profit margin has been volatile but generally stable over the past 4 years.
Formula: Net Profit Margin = Net Income / Revenue
Good Range: Ranges 5%-20% for many industries.