Amedisys Inc (AMED)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -9,747 | 118,609 | 209,072 | 183,608 | 126,833 |
| Total stockholders’ equity | US$ in thousands | 1,066,510 | 1,051,570 | 931,351 | 809,224 | 640,450 |
| ROE | -0.91% | 11.28% | 22.45% | 22.69% | 19.80% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-9,747K ÷ $1,066,510K
= -0.91%
Amedisys Inc.'s return on equity (ROE) has shown fluctuations over the past five years. In 2023, the ROE decreased significantly to -0.91%, indicating that the company experienced a negative return on shareholders' equity during that year. This decline raises concerns about the company's ability to generate profits relative to its equity base.
In contrast, the ROE was relatively strong in 2022 at 11.28%, demonstrating that for every dollar of equity invested by shareholders, the company generated a return of 11.28%. This positive ROE indicates efficiency in utilizing shareholder funds to generate earnings.
The ROE peaked in 2021 at 22.45%, signifying a strong performance in that year. Amedisys Inc. was able to deliver significant returns on equity, reflecting efficient management of assets and liabilities to drive profitability.
Similarly, in 2020 and 2019, the ROEs were 22.69% and 19.80%, respectively, both indicating robust returns on equity during those years. These positive trends suggest that the company was effectively leveraging shareholders' equity to create value and generate profits.
Overall, while Amedisys Inc. experienced a downturn in ROE in 2023, its performance in the preceding years showcased solid returns on equity. Investors and stakeholders should closely monitor future ROE trends to assess the company's financial health and profitability prospects.
Peer comparison
Dec 31, 2023