The Ensign Group Inc (ENSG)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 297,973 | 239,977 | 225,396 | 218,382 | 209,399 | 248,179 | 240,495 | 234,193 | 224,681 | 212,950 | 204,052 | 195,786 | 194,652 | 192,233 | 188,012 | 178,835 | 170,478 | 151,551 | 135,650 | 124,011 |
| Total stockholders’ equity | US$ in thousands | 1,837,110 | 1,747,300 | 1,657,360 | 1,577,900 | 1,491,860 | 1,459,750 | 1,387,780 | 1,318,170 | 1,247,330 | 1,180,060 | 1,120,170 | 1,071,590 | 1,020,770 | 979,200 | 928,593 | 876,047 | 818,077 | 764,755 | 715,997 | 675,236 |
| ROE | 16.22% | 13.73% | 13.60% | 13.84% | 14.04% | 17.00% | 17.33% | 17.77% | 18.01% | 18.05% | 18.22% | 18.27% | 19.07% | 19.63% | 20.25% | 20.41% | 20.84% | 19.82% | 18.95% | 18.37% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $297,973K ÷ $1,837,110K
= 16.22%
The return on equity (ROE) for The Ensign Group Inc has shown fluctuation over the period from March 31, 2020, to December 31, 2024. The ROE started at 18.37% in March 2020 and gradually increased to a peak of 20.84% by December 2020, reflecting improving profitability relative to shareholders' equity.
From March 2021 to September 2021, the ROE remained relatively stable, ranging between 19.63% and 20.41%. However, starting from December 2021, there was a decline in ROE figures, with the ratio dropping to 19.07% by that period and further decreasing to 13.84% by March 2024.
The sharp decline in ROE from December 2023 to March 2024 from 17.00% to 13.84% might indicate a decrease in the company's profitability relative to its equity base. This could be concerning as it suggests a lower return generated for every dollar of shareholder investment.
Although there was a slight recovery by December 2024 with an ROE of 16.22%, the overall decreasing trend in ROE over the last few periods should be carefully monitored by stakeholders. It may indicate potential challenges in generating profits and managing the company's assets efficiently, impacting shareholders' returns on their investment in The Ensign Group Inc.
Peer comparison
Dec 31, 2024