Adapthealth Corp (AHCO)

Return on equity (ROE)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	-678,895	-426,980	43,218	43,273	69,316	94,846	136,816	201,891	156,175	52,717	-56,410	-131,047	-161,632	-90,887	-43,538	-50,091	-21,340	10,263	14,467	17,240
Total stockholders’ equity	US$ in thousands	1,458,450	1,732,480	2,180,940	2,159,890	2,151,160	2,154,370	2,133,220	2,115,360	2,061,910	1,990,110	1,889,960	1,788,280	354,889	360,999	8,491	-33,173	-14,520	5,000	5,000	5,000
ROE		-46.55%	-24.65%	1.98%	2.00%	3.22%	4.40%	6.41%	9.54%	7.57%	2.65%	-2.98%	-7.33%	-45.54%	-25.18%	-512.75%	—	—	205.26%	289.34%	344.80%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-678,895K ÷ $1,458,450K
= -46.55%

The return on equity (ROE) for AdaptHealth Corp has shown fluctuating trends over the past eight quarters. In Q4 2023, the ROE was -46.55%, indicating a negative return relative to shareholders' equity. This steep decline from the previous quarter's -24.78% suggests a worsening performance in generating profits from the equity invested.

The negative ROE in Q4 2023 may raise concerns about the company's ability to create value for shareholders through efficient utilization of equity capital. It is essential for the company to investigate the factors causing the substantial decrease in ROE and take corrective actions to improve profitability and efficiency in managing shareholders' equity.

In the context of historical data, the ROE has been declining over the past two years, dropping from a peak of 8.70% in Q1 2022 to the recent low of -46.55% in Q4 2023. This downward trend signals a deterioration in the company's profitability and may indicate underlying operational or financial challenges that need to be addressed to enhance shareholder returns.

Overall, the negative and declining ROE figures for AdaptHealth Corp highlight the importance of closely monitoring the company's financial performance, addressing the root causes of low returns on equity, and implementing strategic measures to turnaround and improve its profitability and efficiency in utilizing shareholders' equity.