R1 RCM Inc (RCM)
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 | ||
|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 3,300 | -29,000 | -59,000 | -85,700 | |||
| Total stockholders’ equity | US$ in thousands | 2,751,400 | 2,743,400 | 2,725,000 | 2,702,700 | 2,702,500 | 2,749,200 | 2,733,600 |
| ROE | 0.12% | -1.06% | -2.17% | -3.17% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $3,300K ÷ $2,751,400K
= 0.12%
To analyze the Return on Equity (ROE) trend of R1 RCM Inc., we look at the data provided for the last eight quarters.
In Q1 2022, the ROE was notably high at 27.50%, indicating that the company was generating strong returns on the equity invested during that period. However, this trend reversed in subsequent quarters.
From Q2 2022 to Q3 2023, R1 RCM Inc. experienced a declining trend in ROE, with negative values observed in each of these quarters. This indicates that the company's ability to generate profits from its shareholders' equity declined during this period.
The most significant decline in ROE occurred from Q1 2023 to Q3 2023, where the ROE went from -3.19% to -1.28% and further decreased to 0.12%. This indicates a potential struggle in efficiently utilizing shareholder equity to generate profits during this period.
Overall, the ROE trend for R1 RCM Inc. shows a considerable fluctuation and decline over the last eight quarters. It is essential for the company to focus on improving efficiency in utilizing equity to generate profits in order to enhance shareholder value and financial performance in the future.
Peer comparison
Dec 31, 2023