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.
Peer comparison
Dec 31, 2023