The Ensign Group Inc (ENSG)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 209,399 | 224,681 | 194,652 | 170,478 | 110,534 |
| Total stockholders’ equity | US$ in thousands | 1,491,860 | 1,247,330 | 1,020,770 | 818,077 | 654,197 |
| ROE | 14.04% | 18.01% | 19.07% | 20.84% | 16.90% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $209,399K ÷ $1,491,860K
= 14.04%
Ensign Group Inc's return on equity (ROE) has exhibited a decreasing trend over the past five years. The ROE decreased from 16.90% in 2019 to 14.04% in 2023. This downward trend suggests that the company's ability to generate profit from its shareholder equity has weakened over the period.
A declining ROE could be due to various factors such as decreasing profitability, increasing debt levels, or inefficient utilization of assets. It is important for stakeholders to closely monitor the reasons behind the decreasing ROE to assess the company's financial health and sustainability.
Further analysis of Ensign Group Inc's financial statements and performance metrics is recommended to gain a comprehensive understanding of the factors influencing its ROE and to make informed investment decisions.
Peer comparison
Dec 31, 2023