0R00 Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Cerner Corp - Alpha Spread
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Cerner Corp
LSE:0R00

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Cerner Corp
LSE:0R00
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Price: 94.985 USD 0.27% Market Closed
Market Cap: 31.3B USD
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Cerner Corp

Revenue
5.8B USD
Cost of Revenue
-1B USD
Gross Profit
4.8B USD
Operating Expenses
-4.1B USD
Operating Income
742.2m USD
Other Expenses
-152.7m USD
Net Income
589.5m USD

Margins Comparison
Cerner Corp Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
US
Cerner Corp
LSE:0R00
31.3B USD
83%
13%
10%
US
Veeva Systems Inc
NYSE:VEEV
34.6B USD
73%
23%
24%
AU
Pro Medicus Ltd
ASX:PME
18B AUD
100%
71%
50%
US
Doximity Inc
NYSE:DOCS
7.6B USD
90%
37%
33%
JP
M3 Inc
TSE:2413
986.6B JPY
58%
25%
18%
US
Inspire Medical Systems Inc
NYSE:INSP
6.3B USD
85%
-2%
1%
SE
Sectra AB
STO:SECT B
51.6B SEK
47%
-41%
25%
US
Waystar Holding Corp
NASDAQ:WAY
4.5B USD
67%
13%
-9%
US
Evolent Health Inc
NYSE:EVH
3.5B USD
19%
0%
-5%
US
Vocera Communications Inc
F:V00
2.4B EUR
66%
0%
-4%
US
Goodrx Holdings Inc
NASDAQ:GDRX
2.6B USD
92%
-4%
-8%
Country US
Market Cap 31.3B USD
Gross Margin
83%
Operating Margin
13%
Net Margin
10%
Country US
Market Cap 34.6B USD
Gross Margin
73%
Operating Margin
23%
Net Margin
24%
Country AU
Market Cap 18B AUD
Gross Margin
100%
Operating Margin
71%
Net Margin
50%
Country US
Market Cap 7.6B USD
Gross Margin
90%
Operating Margin
37%
Net Margin
33%
Country JP
Market Cap 986.6B JPY
Gross Margin
58%
Operating Margin
25%
Net Margin
18%
Country US
Market Cap 6.3B USD
Gross Margin
85%
Operating Margin
-2%
Net Margin
1%
Country SE
Market Cap 51.6B SEK
Gross Margin
47%
Operating Margin
-41%
Net Margin
25%
Country US
Market Cap 4.5B USD
Gross Margin
67%
Operating Margin
13%
Net Margin
-9%
Country US
Market Cap 3.5B USD
Gross Margin
19%
Operating Margin
0%
Net Margin
-5%
Country US
Market Cap 2.4B EUR
Gross Margin
66%
Operating Margin
0%
Net Margin
-4%
Country US
Market Cap 2.6B USD
Gross Margin
92%
Operating Margin
-4%
Net Margin
-8%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Cerner Corp Competitors

Country Company Market Cap ROE ROA ROCE ROIC
US
Cerner Corp
LSE:0R00
31.3B USD
14%
8%
12%
10%
US
Veeva Systems Inc
NYSE:VEEV
34.6B USD
13%
11%
12%
34%
AU
Pro Medicus Ltd
ASX:PME
18B AUD
51%
36%
60%
91%
US
Doximity Inc
NYSE:DOCS
7.6B USD
17%
14%
18%
47%
JP
M3 Inc
TSE:2413
986.6B JPY
13%
9%
15%
16%
US
Inspire Medical Systems Inc
NYSE:INSP
6.3B USD
1%
1%
-2%
-6%
SE
Sectra AB
STO:SECT B
51.6B SEK
29%
15%
-46%
-26%
US
Waystar Holding Corp
NASDAQ:WAY
4.5B USD
-3%
-2%
3%
2%
US
Evolent Health Inc
NYSE:EVH
3.5B USD
-8%
-4%
0%
0%
US
Vocera Communications Inc
F:V00
2.4B EUR
-5%
-2%
0%
0%
US
Goodrx Holdings Inc
NASDAQ:GDRX
2.6B USD
-8%
-4%
-2%
-3%
Country US
Market Cap 31.3B USD
ROE
14%
ROA
8%
ROCE
12%
ROIC
10%
Country US
Market Cap 34.6B USD
ROE
13%
ROA
11%
ROCE
12%
ROIC
34%
Country AU
Market Cap 18B AUD
ROE
51%
ROA
36%
ROCE
60%
ROIC
91%
Country US
Market Cap 7.6B USD
ROE
17%
ROA
14%
ROCE
18%
ROIC
47%
Country JP
Market Cap 986.6B JPY
ROE
13%
ROA
9%
ROCE
15%
ROIC
16%
Country US
Market Cap 6.3B USD
ROE
1%
ROA
1%
ROCE
-2%
ROIC
-6%
Country SE
Market Cap 51.6B SEK
ROE
29%
ROA
15%
ROCE
-46%
ROIC
-26%
Country US
Market Cap 4.5B USD
ROE
-3%
ROA
-2%
ROCE
3%
ROIC
2%
Country US
Market Cap 3.5B USD
ROE
-8%
ROA
-4%
ROCE
0%
ROIC
0%
Country US
Market Cap 2.4B EUR
ROE
-5%
ROA
-2%
ROCE
0%
ROIC
0%
Country US
Market Cap 2.6B USD
ROE
-8%
ROA
-4%
ROCE
-2%
ROIC
-3%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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