Centene Corp (CNC)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,702,000 | 1,202,000 | 1,347,000 | 1,808,000 | 1,321,000 |
| Total stockholders’ equity | US$ in thousands | 25,840,000 | 24,057,000 | 26,795,000 | 25,773,000 | 12,551,000 |
| ROE | 10.46% | 5.00% | 5.03% | 7.02% | 10.53% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,702,000K ÷ $25,840,000K
= 10.46%
The return on equity (ROE) of Centene Corp. has fluctuated over the past five years. In 2023, Centene achieved an ROE of 10.46%, showing an improvement compared to the previous year where it was 5.00%. However, this ROE is still lower than the levels seen in 2019 and 2020, where it reached 10.53% and 7.02%, respectively.
It is important to note that a higher ROE indicates the company is more efficient in generating profit from shareholders' equity. The increase in ROE from 2022 to 2023 suggests that Centene's profitability and efficiency have improved. Further analysis is required to understand the factors contributing to this increase and whether it is sustainable in the long term. Overall, while the recent increase in ROE is a positive sign, it is essential to monitor this ratio over time to assess the company's financial performance and effectiveness in utilizing its equity.
Peer comparison
Dec 31, 2023