Healthcare Services Group Inc (HCSG)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 39,471 | 38,386 | 34,243 | 48,543 | 98,682 |
| Total stockholders’ equity | US$ in thousands | 499,927 | 456,616 | 426,172 | 452,677 | 480,461 |
| ROE | 7.90% | 8.41% | 8.04% | 10.72% | 20.54% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $39,471K ÷ $499,927K
= 7.90%
Healthcare Services Group Inc's return on equity (ROE) has shown a gradual decline over the five-year period from 2020 to 2024. Starting at a strong level of 20.54% in December 2020, ROE decreased to 10.72% by December 2021, and continued to decline further to 8.04% by December 2022. The trend of decreasing ROE continued with slight fluctuations, reaching 8.41% by December 2023, and dropping to 7.90% by December 2024.
The declining ROE indicates that the company's ability to generate profits from shareholders' equity has weakened over the years. It suggests that the company may be facing challenges in efficiently utilizing its equity capital to generate returns for its shareholders. Healthcare Services Group Inc may need to focus on improving its profitability, cost management, or operational efficiency to enhance its ROE and overall financial performance in the future.