CoreCivic Inc (CXW)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 68,868 | 67,590 | 122,320 | -51,896 | 55,338 |
| Total stockholders’ equity | US$ in thousands | 1,493,350 | 1,477,570 | 1,432,410 | 1,372,470 | 1,390,170 |
| ROE | 4.61% | 4.57% | 8.54% | -3.78% | 3.98% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $68,868K ÷ $1,493,350K
= 4.61%
CoreCivic Inc's return on equity (ROE) has displayed variations over the past few years. In 2020, the ROE stood at 3.98%, indicating that the company generated a modest return for its shareholders relative to the equity invested.
However, in 2021, the ROE turned negative at -3.78%, suggesting that CoreCivic Inc experienced a net loss in that year relative to its shareholders' equity. This negative ROE can be a concerning signal for investors as it indicates a potential decline in profitability or efficiency.
The year 2022 saw a notable improvement in the ROE, reaching 8.54%. This increase indicates that CoreCivic Inc managed to generate a higher return for its shareholders compared to the previous year, signaling potential growth or increased efficiency in the company's operations.
In 2023, the ROE moderated to 4.57%, remaining at a relatively stable level compared to the previous year. This consistent performance suggests that CoreCivic Inc maintained its efficiency in utilizing shareholders' equity to generate returns.
By the end of 2024, the ROE slightly increased to 4.61%, indicating a marginal improvement in profitability compared to the previous year. This gradual growth in ROE signifies ongoing efforts by CoreCivic Inc to enhance its performance and create value for its shareholders.
Overall, CoreCivic Inc's ROE has shown variability, including periods of modest returns, negative performance, and slight improvements. Investors should continue to monitor the company's ROE trend to assess its ability to generate returns on shareholders' equity effectively.
Peer comparison
Dec 31, 2024