Adapthealth Corp (AHCO)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 90,422 -678,895 69,316 156,175 -161,632
Total stockholders’ equity US$ in thousands 1,571,140 1,458,450 2,151,160 2,061,910 354,889
ROE 5.76% -46.55% 3.22% 7.57% -45.54%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $90,422K ÷ $1,571,140K
= 5.76%

Adapthealth Corp's return on equity (ROE) has shown significant fluctuations over the past five years. In December 2020, the ROE was notably negative at -45.54%, indicating that the company's net income was insufficient to cover shareholders' equity. However, by December 2021, there was an improvement as the ROE increased to 7.57%, indicating that the company generated a positive return for its shareholders.

In the following years, the ROE continued to fluctuate, with December 2022 showing a slight decrease to 3.22%. This suggests that the company's profitability relative to shareholders' equity was lower in that period. The ROE then experienced a sharp decline in December 2023, dropping to -46.55%, indicating a significant decrease in profitability compared to the equity invested.

However, there was a rebound by December 2024, with the ROE increasing to 5.76%. This suggests that the company's profitability improved, although it was still below the levels seen in 2021. Overall, the fluctuating trend in Adapthealth Corp's ROE indicates varying levels of profitability and efficiency in utilizing shareholder equity over the five-year period.