Option Care Health Inc (OPCH)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	267,090	257,442	239,963	159,489	150,556	178,494	175,147	173,034	139,898	82,270	48,457	8,973	-8,076	-41,726	-86,183	-92,118	-75,920	-56,855	-12,270	-2,976
Total stockholders’ equity	US$ in thousands	1,421,670	1,440,080	1,475,380	1,350,220	1,386,100	1,337,340	1,284,990	1,221,760	1,175,890	1,097,480	1,056,610	1,018,080	1,015,720	993,496	867,966	870,493	906,827	921,682	584,146	597,171
ROE		18.79%	17.88%	16.26%	11.81%	10.86%	13.35%	13.63%	14.16%	11.90%	7.50%	4.59%	0.88%	-0.80%	-4.20%	-9.93%	-10.58%	-8.37%	-6.17%	-2.10%	-0.50%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $267,090K ÷ $1,421,670K
= 18.79%

Option Care Health Inc.'s return on equity (ROE) has shown a positive trend over the past eight quarters, with the latest reported ROE for Q4 2023 standing at 18.79%. This indicates that for every dollar of shareholders' equity invested in the company, it generated a return of 18.79% in that quarter. The consistent increase in ROE from Q1 2022 (14.16%) to Q4 2023 reflects improved efficiency in utilizing shareholders' equity to generate profits.

The company's ROE was relatively stable in the range of 10.86% to 14.16% between Q1 2022 and Q1 2023, showing moderate performance. However, a more significant improvement was observed in Q2 2023 (16.26%) and continued in subsequent quarters, reaching the highest point in Q4 2023. This upward trend in ROE signifies enhanced profitability and effectiveness in using shareholders' equity to drive earnings growth.

Overall, Option Care Health Inc.'s increasing ROE indicates a positive financial performance and efficient utilization of equity capital, suggesting potential value creation for shareholders. It is essential for investors and stakeholders to monitor this ratio over time to assess the company's profitability and effectiveness in generating returns on equity investment.