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.
Peer comparison
Dec 31, 2023