Centene Corp (CNC)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,305,000 | 2,702,000 | 1,202,000 | 1,347,000 | 1,808,000 |
| Total stockholders’ equity | US$ in thousands | 26,410,000 | 25,840,000 | 24,057,000 | 26,795,000 | 25,773,000 |
| ROE | 12.51% | 10.46% | 5.00% | 5.03% | 7.02% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $3,305,000K ÷ $26,410,000K
= 12.51%
Centene Corp's return on equity (ROE) has shown a fluctuating trend over the past five years. As of December 31, 2020, the ROE was 7.02%, which declined to 5.03% by December 31, 2021, and further decreased to 5.00% by December 31, 2022. However, there was a notable improvement in performance by December 31, 2023, with the ROE increasing to 10.46% and continuing to rise significantly to 12.51% by December 31, 2024.
The increase in ROE from 2023 to 2024 indicates that Centene Corp has been able to generate more profit relative to shareholders' equity, which suggests improved efficiency in utilizing equity to generate profits.
Overall, while there have been fluctuations in Centene Corp's ROE in recent years, the upward trend observed from 2023 to 2024 reflects positive performance in terms of profitability and efficiency. Continued monitoring and analysis of ROE will be important to assess the company's ability to generate returns for its shareholders in the future.
Peer comparison
Dec 31, 2024