Select Medical Holdings (SEM)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 243,491 | 158,994 | 402,225 | 258,995 | 148,449 |
| Total stockholders’ equity | US$ in thousands | 1,288,300 | 1,121,920 | 1,109,980 | 1,060,480 | 770,972 |
| ROE | 18.90% | 14.17% | 36.24% | 24.42% | 19.25% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $243,491K ÷ $1,288,300K
= 18.90%
The return on equity (ROE) for Select Medical Holdings Corporation has shown some fluctuations over the past five years. In 2023, the ROE was 18.22%, a moderate increase from the previous year's 13.67%. However, this figure was lower compared to the ROE in 2021, which was significantly higher at 35.03%. The company experienced a decrease in ROE in 2022 after achieving a peak in 2021.
The ROE in 2020 was 24.42%, reflecting a strong performance, while in 2019, the ROE was 19.25%. Overall, the trend in ROE indicates some variability in the company's ability to generate profits relative to its shareholder equity over the last five years. It would be beneficial to further analyze the factors driving these changes in ROE to assess the company's profitability and efficiency in utilizing shareholder equity.
Peer comparison
Dec 31, 2023