HealthStream Inc (HSTM)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	15,213	12,091	5,845	14,091	15,770
Total stockholders’ equity	US$ in thousands	340,752	334,064	339,019	334,062	338,168
ROE		4.46%	3.62%	1.72%	4.22%	4.66%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $15,213K ÷ $340,752K
= 4.46%

Healthstream Inc's return on equity (ROE) has shown some fluctuation over the past five years. In 2023, the company's ROE stood at 4.46%, an improvement from the previous year's 3.62%. However, this is still below the ROE levels recorded in 2019 and 2020, which were 4.66% and 4.22%, respectively. The ROE in 2021 was the lowest at 1.72%.

The ROE measures the company's profitability in generating returns from shareholders' equity. A higher ROE indicates that the company is effectively using shareholders' equity to generate profits. While the recent increase in ROE is a positive sign, it is important for Healthstream Inc to sustain and potentially improve this metric to enhance shareholder value and demonstrate efficient management of resources. Further analysis of the company's financial performance and operational efficiency may provide insights into factors influencing the ROE trend and opportunities for improvement.