Acadia Healthcare Company Inc (ACHC)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -21,667 | 273,139 | 190,635 | -672,132 | 108,923 |
| Total stockholders’ equity | US$ in thousands | 2,781,970 | 2,812,730 | 2,517,490 | 1,899,460 | 2,505,380 |
| ROE | -0.78% | 9.71% | 7.57% | -35.39% | 4.35% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-21,667K ÷ $2,781,970K
= -0.78%
Acadia Healthcare Company Inc's return on equity (ROE) has shown fluctuation over the past five years. In 2023, the ROE was -0.78%, indicating a negative return on equity, which may be a cause for concern as it means the company generated a net loss relative to its shareholders' equity. This negative ROE could be attributed to various reasons such as high debt levels, poor operational performance, or impairment charges.
Compared to 2022 and 2021, where the ROE was 9.71% and 7.57% respectively, the ROE in 2023 reflects a significant drop in profitability and efficiency in generating returns for shareholders.
In 2020, Acadia Healthcare experienced a substantial decline in ROE to -35.39%, indicating a significant loss relative to shareholders' equity. This could be attributed to extraordinary events or financial challenges faced by the company during that period.
The ROE improved in 2019 to 4.35%, indicating a better performance in generating returns for shareholders compared to 2023 but still lower than the returns achieved in 2022 and 2021.
Overall, the negative ROE in 2023 raises concerns about the company's profitability and efficiency in utilizing shareholders' equity to generate returns. It is important for Acadia Healthcare to address the factors contributing to the negative ROE and work towards improving its financial performance and shareholder value in the future.
Peer comparison
Dec 31, 2023