Community Healthcare Trust Inc (CHCT)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 7,714 | 22,019 | 22,492 | 19,077 | 8,376 |
| Total stockholders’ equity | US$ in thousands | 513,256 | 496,814 | 462,112 | 429,916 | 353,411 |
| ROE | 1.50% | 4.43% | 4.87% | 4.44% | 2.37% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $7,714K ÷ $513,256K
= 1.50%
Community Healthcare Trust Inc's return on equity (ROE) has shown fluctuations over the past five years. In 2023, the ROE decreased significantly to 0.99% from 3.86% in 2022. This decline indicates that the company's ability to generate profits from its shareholders' equity has weakened.
Comparing 2023 to the previous years, the ROE is notably lower than the levels seen in 2021 (4.37%) and 2020 (4.01%). This downward trend suggests a potential deterioration in the company's efficiency in utilizing its equity to generate returns for shareholders.
However, it is important to note that the ROE in 2023 is higher than that of 2019 (1.97%), indicating some improvement over a longer time horizon. Overall, further analysis of the company's financial performance and factors impacting its ROE would be necessary to understand the reasons behind these fluctuations. Additionally, investors and stakeholders may need to closely monitor the company's ROE trend to assess its financial health and performance.
Peer comparison
Dec 31, 2023