Analysis of Reportable Segments
Express Scripts Holding Co. operates in 2 segments: PBM and Other Business Operations.
Segment Profit Margin
Express Scripts Holding Co., profit margin by reportable segment
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|
| PBM | 5.68% | 5.26% | 4.31% | 3.60% | 3.44% |
| Other Business Operations | 1.81% | 0.21% | 2.76% | 2.23% | 2.25% |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | PBM | PBM segment profit margin ratio improved from 2015 to 2016 and from 2016 to 2017. |
| Other Business Operations | Other Business Operations segment profit margin ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level. |
Segment Profit Margin: PBM
Express Scripts Holding Co.; PBM; segment profit margin calculation
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Operating income | 5,407,000) | 5,080,000) | 4,262,200) | 3,546,400) | 3,502,000) |
| Revenues | 95,260,000) | 96,509,500) | 98,960,300) | 98,379,600) | 101,885,700) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 5.68% | 5.26% | 4.31% | 3.60% | 3.44% |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Segment profit margin = 100 × Operating income ÷ Revenues
= 100 × 5,407,000 ÷ 95,260,000 = 5.68%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | PBM | PBM segment profit margin ratio improved from 2015 to 2016 and from 2016 to 2017. |
Segment Profit Margin: Other Business Operations
Express Scripts Holding Co.; Other Business Operations; segment profit margin calculation
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Operating income | 87,000) | 7,800) | 77,100) | 56,000) | 49,700) |
| Revenues | 4,804,600) | 3,778,000) | 2,791,500) | 2,507,500) | 2,213,100) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 1.81% | 0.21% | 2.76% | 2.23% | 2.25% |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Segment profit margin = 100 × Operating income ÷ Revenues
= 100 × 87,000 ÷ 4,804,600 = 1.81%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Other Business Operations | Other Business Operations segment profit margin ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level. |
Segment Return on Assets (Segment ROA)
Express Scripts Holding Co., ROA by reportable segment
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|
| PBM | 11.13% | 10.07% | 8.17% | 6.71% | 6.66% |
| Other Business Operations | 1.53% | 0.59% | 7.22% | 6.17% | 5.41% |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | PBM | PBM segment ROA improved from 2015 to 2016 and from 2016 to 2017. |
| Other Business Operations | Other Business Operations segment ROA deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017. |
Segment ROA: PBM
Express Scripts Holding Co.; PBM; segment ROA calculation
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Operating income | 5,407,000) | 5,080,000) | 4,262,200) | 3,546,400) | 3,502,000) |
| Total assets | 48,562,600) | 50,432,700) | 52,174,900) | 52,891,600) | 52,599,100) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 11.13% | 10.07% | 8.17% | 6.71% | 6.66% |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Segment ROA = 100 × Operating income ÷ Total assets
= 100 × 5,407,000 ÷ 48,562,600 = 11.13%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | PBM | PBM segment ROA improved from 2015 to 2016 and from 2016 to 2017. |
Segment ROA: Other Business Operations
Express Scripts Holding Co.; Other Business Operations; segment ROA calculation
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Operating income | 87,000) | 7,800) | 77,100) | 56,000) | 49,700) |
| Total assets | 5,693,200) | 1,312,200) | 1,068,400) | 907,300) | 918,100) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 1.53% | 0.59% | 7.22% | 6.17% | 5.41% |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Segment ROA = 100 × Operating income ÷ Total assets
= 100 × 87,000 ÷ 5,693,200 = 1.53%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Other Business Operations | Other Business Operations segment ROA deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017. |
Segment Asset Turnover
Express Scripts Holding Co., asset turnover by reportable segment
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|
| PBM | 1.96 | 1.91 | 1.90 | 1.86 | 1.94 |
| Other Business Operations | 0.84 | 2.88 | 2.61 | 2.76 | 2.41 |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | PBM | PBM segment asset turnover ratio improved from 2015 to 2016 and from 2016 to 2017. |
| Other Business Operations | Other Business Operations segment asset turnover ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017. |
Segment Asset Turnover: PBM
Express Scripts Holding Co.; PBM; segment asset turnover calculation
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenues | 95,260,000) | 96,509,500) | 98,960,300) | 98,379,600) | 101,885,700) |
| Total assets | 48,562,600) | 50,432,700) | 52,174,900) | 52,891,600) | 52,599,100) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.96 | 1.91 | 1.90 | 1.86 | 1.94 |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Segment asset turnover = Revenues ÷ Total assets
= 95,260,000 ÷ 48,562,600 = 1.96
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | PBM | PBM segment asset turnover ratio improved from 2015 to 2016 and from 2016 to 2017. |
Segment Asset Turnover: Other Business Operations
Express Scripts Holding Co.; Other Business Operations; segment asset turnover calculation
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenues | 4,804,600) | 3,778,000) | 2,791,500) | 2,507,500) | 2,213,100) |
| Total assets | 5,693,200) | 1,312,200) | 1,068,400) | 907,300) | 918,100) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.84 | 2.88 | 2.61 | 2.76 | 2.41 |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Segment asset turnover = Revenues ÷ Total assets
= 4,804,600 ÷ 5,693,200 = 0.84
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Other Business Operations | Other Business Operations segment asset turnover ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017. |
Segment Capital Expenditures to Depreciation
Express Scripts Holding Co., capital expenditures to depreciation by reportable segment
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|
| PBM | 0.14 | 0.14 | 0.12 | 0.19 | 0.17 |
| Other Business Operations | 0.60 | 0.74 | 0.88 | 0.73 | 0.42 |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | PBM | PBM segment capital expenditures to depreciation ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
| Other Business Operations | Other Business Operations segment capital expenditures to depreciation ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
Segment Capital Expenditures to Depreciation: PBM
Express Scripts Holding Co.; PBM; segment capital expenditures to depreciation calculation
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Capital expenditures | 248,100) | 307,900) | 269,100) | 412,300) | 411,200) |
| Depreciation and amortization expense | 1,769,700) | 2,124,100) | 2,328,700) | 2,209,500) | 2,419,100) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.14 | 0.14 | 0.12 | 0.19 | 0.17 |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization expense
= 248,100 ÷ 1,769,700 = 0.14
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | PBM | PBM segment capital expenditures to depreciation ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
Segment Capital Expenditures to Depreciation: Other Business Operations
Express Scripts Holding Co.; Other Business Operations; segment capital expenditures to depreciation calculation
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Capital expenditures | 19,300) | 22,500) | 26,800) | 24,300) | 11,800) |
| Depreciation and amortization expense | 32,300) | 30,500) | 30,400) | 33,400) | 27,900) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.60 | 0.74 | 0.88 | 0.73 | 0.42 |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 2017 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization expense
= 19,300 ÷ 32,300 = 0.60
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Other Business Operations | Other Business Operations segment capital expenditures to depreciation ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
Revenues
Express Scripts Holding Co., revenues by reportable segment
US$ in thousands
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|
| PBM | 95,260,000) | 96,509,500) | 98,960,300) | 98,379,600) | 101,885,700) |
| Other Business Operations | 4,804,600) | 3,778,000) | 2,791,500) | 2,507,500) | 2,213,100) |
| Total | 100,064,600) | 100,287,500) | 101,751,800) | 100,887,100) | 104,098,800) |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Depreciation and amortization expense
Express Scripts Holding Co., depreciation and amortization expense by reportable segment
US$ in thousands
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|
| PBM | 1,769,700) | 2,124,100) | 2,328,700) | 2,209,500) | 2,419,100) |
| Other Business Operations | 32,300) | 30,500) | 30,400) | 33,400) | 27,900) |
| Total | 1,802,000) | 2,154,600) | 2,359,100) | 2,242,900) | 2,447,000) |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Operating income
Express Scripts Holding Co., operating income by reportable segment
US$ in thousands
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|
| PBM | 5,407,000) | 5,080,000) | 4,262,200) | 3,546,400) | 3,502,000) |
| Other Business Operations | 87,000) | 7,800) | 77,100) | 56,000) | 49,700) |
| Total | 5,494,000) | 5,087,800) | 4,339,300) | 3,602,400) | 3,551,700) |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Capital expenditures
Express Scripts Holding Co., capital expenditures by reportable segment
US$ in thousands
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|
| PBM | 248,100) | 307,900) | 269,100) | 412,300) | 411,200) |
| Other Business Operations | 19,300) | 22,500) | 26,800) | 24,300) | 11,800) |
| Total | 267,400) | 330,400) | 295,900) | 436,600) | 423,000) |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Total assets
Express Scripts Holding Co., total assets by reportable segment
US$ in thousands
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|
| PBM | 48,562,600) | 50,432,700) | 52,174,900) | 52,891,600) | 52,599,100) |
| Other Business Operations | 5,693,200) | 1,312,200) | 1,068,400) | 907,300) | 918,100) |
| Discontinued operations | —) | —) | —) | —) | 31,000) |
| Total | 54,255,800) | 51,744,900) | 53,243,300) | 53,798,900) | 53,548,200) |
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).