Molina Healthcare MOH Earnings Analysis

Revenue Analysis

Total and Operating Revenue: The Total Revenue for MOH showed growth from $8,149,000,000 in 2023-03-31 to $9,031,000,000 in 2023-12-31 before peaking at $9,931,000,000 by 2024-03-31. Similarly, Operating Revenue increased from $7,885,000,000 in 2023-03-31 to $8,362,000,000 in 2023-12-31 and further to $9,504,000,000 in 2024-03-31.

Gross Profit Margin: Gross Profit also saw an upward trend, from $1,106,000,000 in 2023-03-31 to $1,242,000,000 by the end of the data period in 2024-03-31. This reflects an improving efficiency in managing the cost of goods sold.

Cost Management

Cost of Revenue: Cost of Revenue increased consistently from $7,043,000,000 in 2023-03-31 to $8,711,000,000 by 2024-03-31. This aligns with the increased revenue, indicating scaling of operations.

Operating Expense: Operating Expense increased from $651,000,000 in 2023-03-31 to $794,000,000 by 2024-03-31, which is in proportion with the increase in revenue and gross profit.

Total Expenses: Total Expenses have been managed proportionally, rising from $7,694,000,000 in 2023-03-31 to $9,505,000,000 in 2024-03-31 in response to revenue growth.

Profitability Analysis

EBITDA: EBITDA experienced a growth trend, starting at $499,000,000 in 2023-03-31 and rising to $471,000,000 by 2024-03-31, although it peaked earlier at $485,000,000 in 2023-06-30.

Operating Income: Operating Income also improved, starting at $455,000,000 in 2023-03-31 and increasing to $426,000,000 by 2024-03-31.

Pretax Income: Improvement is noted in Pretax Income from $427,000,000 in 2023-03-31 to $399,000,000 by 2024-03-31.

Net Income: Net Income increased from $321,000,000 in 2023-03-31 to $301,000,000 in 2024-03-31, showing a robust bottom line despite some fluctuations.

Cash Flow Indicators

Depreciation: Depreciation has stayed relatively stable, ranging from $42,000,000 to $45,000,000 through the period. This indicates consistent capital expenditure and asset utilization.

Interest Expense: Interest Expense has been constant at $27,000,000 across the periods, indicating a stable debt level.

Taxation

Tax Rate: The effective tax rate fluctuated slightly from 25% in 2023-03-31 to 24.5% by 2024-03-31.

Tax Provision: Tax provision scaled from $106,000,000 in 2023-03-31 to $98,000,000 in 2024-03-31, aligning with the changes in pretax income.

Tax Effect of Unusual Items: There were no effects from unusual items throughout the periods, simplifying the tax analysis.

Shareholder Metrics

Diluted and Basic EPS: Both Diluted EPS and Basic EPS consistently increased – Diluted EPS rose from 5.52 in 2023-03-31 to 5.17 in 2024-03-31 while Basic EPS showed a similar increase from 5.58 to 5.21.

Average Shares: The average shares stayed quite stable, exhibiting minor fluctuations, which suggests no significant buy-back programs or dilutions took place.

Net Income Available to Common Stockholders: This tracked steadily with net income figures, ensuring a consistent return to the shareholders.

Conclusion

MOH has demonstrated a strong upward trajectory in revenue, careful cost management, and consistent profitability over the analyzed period. The stability in cash flow indicators and consistency in shareholder returns suggests a stable financial management strategy. Recommendations would focus on leveraging these strengths while exploring opportunities for expanding operating margins and further cost efficiency measures.