Healthcare Services Group Inc (HCSG)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 38,386 | 34,243 | 45,863 | 98,682 | 64,581 |
| Total stockholders’ equity | US$ in thousands | 456,616 | 418,279 | 452,677 | 480,461 | 460,305 |
| ROE | 8.41% | 8.19% | 10.13% | 20.54% | 14.03% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $38,386K ÷ $456,616K
= 8.41%
Healthcare Services Group, Inc.'s return on equity (ROE) has exhibited variations over the past five years. ROE indicates the efficiency with which the company is utilizing shareholder equity to generate profits.
In 2023, the ROE stood at 8.41%, showing a slight increase from the previous year's 8.13%. Despite this improvement, the ROE remains relatively low compared to earlier years. This may be a result of various factors impacting the company's profitability and efficiency in 2023.
Looking back, in 2021, the ROE was at its peak for the period at 10.13%, indicating a relatively strong performance in that year. However, there was a significant drop in 2020, with the ROE falling to 20.54%, which could be attributed to changes in the company's operations or financial structure during that time.
The ROE for 2019 was 14.03%, reflecting a solid performance, albeit lower than the exceptional performance in 2020. The fluctuation in ROE over the past five years suggests varying levels of profitability and efficiency in utilizing equity to generate returns for shareholders.
In conclusion, while Healthcare Services Group, Inc. has maintained a reasonable ROE over the years, there have been fluctuations in performance, highlighting the need for continued monitoring and strategic decision-making to enhance shareholder value.