National HealthCare Corporation (NHC)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 101,927 | 66,798 | 22,445 | 138,590 | 41,871 |
| Total stockholders’ equity | US$ in thousands | 980,161 | 908,752 | 874,276 | 903,004 | 795,177 |
| ROE | 10.40% | 7.35% | 2.57% | 15.35% | 5.27% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $101,927K ÷ $980,161K
= 10.40%
National HealthCare Corporation's return on equity (ROE) has shown fluctuation over the past five years. In December 2020, the ROE was reported at 5.27%, indicating a relatively low profitability in relation to shareholders' equity. However, there was a significant improvement in the following year, with ROE increasing to 15.35% by December 2021, suggesting a more efficient utilization of equity to generate profits.
Subsequently, in December 2022, there was a notable decline in ROE to 2.57%, reflecting a decrease in the company's ability to generate returns for shareholders based on the equity invested. However, the ROE rebounded in December 2023 to 7.35%, showing a partial recovery in profitability.
By December 2024, National HealthCare Corporation's ROE stood at 10.40%, indicating a further improvement compared to the previous year but still lower than the peak achieved in 2021. Overall, the fluctuation in ROE over the five-year period suggests varying levels of profitability and efficiency in utilizing shareholders' equity within the company.
Peer comparison
Dec 31, 2024