National HealthCare Corporation (NHC)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 101,927 | 124,252 | 91,851 | 81,288 | 66,798 | 44,745 | 31,928 | 18,850 | 22,445 | 31,880 | 30,961 | 132,641 | 138,590 | 150,352 | 166,549 | 89,990 | 41,871 | 28,091 | 34,703 | 20,090 |
| Total stockholders’ equity | US$ in thousands | 980,161 | 983,468 | 945,817 | 924,748 | 908,752 | 885,171 | 883,922 | 877,102 | 874,276 | 877,311 | 897,915 | 905,319 | 903,004 | 895,677 | 906,841 | 807,064 | 795,177 | 773,960 | 768,052 | 742,562 |
| ROE | 10.40% | 12.63% | 9.71% | 8.79% | 7.35% | 5.05% | 3.61% | 2.15% | 2.57% | 3.63% | 3.45% | 14.65% | 15.35% | 16.79% | 18.37% | 11.15% | 5.27% | 3.63% | 4.52% | 2.71% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $101,927K ÷ $980,161K
= 10.40%
National HealthCare Corporation's Return on Equity (ROE) has shown fluctuating performance over the past five years, ranging from as low as 2.15% in March 2023 to a peak of 18.37% in June 2021.
The company experienced a significant increase in ROE in the first quarter of 2021, indicating improved profitability relative to shareholders' equity. The ROE continued to rise steadily through the third quarter of 2021, reaching a high point. However, there was a decline in the performance in the subsequent quarters of 2021 and throughout 2022, with ROE dropping to lower single digits.
In the fourth quarter of 2022, there was a sharp decrease in ROE to 2.57%, reflecting a significant reduction in profitability relative to shareholders' equity. However, the company was able to improve its ROE over the next several quarters, reaching 12.63% in the third quarter of 2024.
Overall, National HealthCare Corporation's ROE performance has been volatile, with periods of strong growth followed by declines. It is essential for the company to focus on sustaining profitability and efficiently utilizing shareholder equity to drive long-term value creation.
Peer comparison
Dec 31, 2024