Addus HomeCare Corporation (ADUS)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	62,516	46,025	45,126	33,133	25,237
Total stockholders’ equity	US$ in thousands	706,694	633,540	574,344	518,676	475,592
ROE		8.85%	7.26%	7.86%	6.39%	5.31%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $62,516K ÷ $706,694K
= 8.85%

Addus HomeCare Corporation's return on equity (ROE) has been showing a positive trend over the past five years, increasing from 5.31% in 2019 to 8.85% in 2023. This indicates that the company has been effectively utilizing its shareholders' equity to generate profits. The consistent improvement in ROE signifies that the company's profitability and efficiency in generating returns for its shareholders have been on an upward trajectory. This could be attributed to effective cost management, profitable investments, or increased revenue streams. The upward trend in ROE reflects positively on Addus HomeCare Corporation's financial performance and management effectiveness.