Molina Healthcare Inc (MOH)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 1,179,000 1,091,000 792,000 659,000 673,000
Total stockholders’ equity US$ in thousands 4,496,000 4,215,000 2,964,000 2,630,000 2,096,000
ROE 26.22% 25.88% 26.72% 25.06% 32.11%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,179,000K ÷ $4,496,000K
= 26.22%

Molina Healthcare Inc's return on equity (ROE) has shown a steady performance over the past five years. Starting at 32.11% on December 31, 2020, it gradually decreased to 25.06% by December 31, 2021, but then slightly improved to 26.72% by December 31, 2022. The ROE further dipped to 25.88% by December 31, 2023, before rising again to 26.22% by December 31, 2024.

Overall, Molina Healthcare Inc's ROE indicates that the company is effectively using its equity to generate net income. The fluctuation in ROE over the years suggests some variability in the company's profitability and efficiency in utilizing its shareholders' equity. Further analysis of the company's financial performance and operational strategies may provide insights into the factors influencing these changes in ROE.