HealthStream Inc (HSTM)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 20,007 | 15,213 | 12,091 | 5,845 | 14,091 |
| Total stockholders’ equity | US$ in thousands | 359,355 | 340,752 | 334,064 | 339,019 | 334,062 |
| ROE | 5.57% | 4.46% | 3.62% | 1.72% | 4.22% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $20,007K ÷ $359,355K
= 5.57%
HealthStream Inc's return on equity (ROE) has shown some fluctuations over the past five years. In December 2020, the ROE was 4.22%, indicating the company generated $4.22 in net income for every $100 of shareholder equity. However, by December 2021, the ROE decreased to 1.72%, suggesting a decline in profitability relative to the equity invested.
There was a moderate improvement in ROE by December 2022, reaching 3.62%, but it still remained below the 2020 level. The trend reversed positively in December 2023, with the ROE increasing to 4.46%, signaling a better profitability performance compared to the previous year.
The most recent data point in December 2024 shows the highest ROE at 5.57%, indicating an improvement in the company's ability to generate returns for shareholders relative to the equity they have invested. It is essential for investors to monitor the company's ROE over time to assess its profitability and efficiency in utilizing shareholder equity.
Peer comparison
Dec 31, 2024