The Ensign Group Inc (ENSG)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 110,534 | 109,500 | 103,202 | 96,604 |
| Total stockholders’ equity | US$ in thousands | 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 | 654,197 | 686,259 | 662,052 | 632,705 |
| ROE | 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% | 16.90% | 15.96% | 15.59% | 15.27% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $209,399K ÷ $1,491,860K
= 14.04%
Based on the data provided for Ensign Group Inc's return on equity (ROE) over the past eight quarters, we can observe a generally declining trend. The ROE has decreased from 18.27% in Q1 2022 to 14.04% in Q4 2023. Despite some fluctuations quarter to quarter, the overall trajectory indicates a decrease in the company's ability to generate profits from the shareholders' equity.
The decline in ROE could indicate potential inefficiencies in the utilization of the company's equity to generate earnings. It may be a result of various factors such as increasing expenses, declining revenues, or changes in the capital structure. Investors and analysts might be concerned about the declining ROE as it suggests a diminishing return on the shareholders' investment.
It is important for Ensign Group Inc to closely examine the drivers behind this trend to address any underlying issues and improve the efficiency of their operations. They may need to focus on enhancing profitability, optimizing costs, and effectively managing their capital to reverse the downward trend in ROE and enhance shareholder value in the long run.
Peer comparison
Dec 31, 2023