Select Medical Holdings (SEM)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 214,038 | 243,491 | 158,994 | 402,225 | 258,995 |
| Total stockholders’ equity | US$ in thousands | 1,681,360 | 1,288,300 | 1,317,530 | 1,325,900 | 1,060,480 |
| ROE | 12.73% | 18.90% | 12.07% | 30.34% | 24.42% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $214,038K ÷ $1,681,360K
= 12.73%
Select Medical Holdings' return on equity (ROE) has shown fluctuations over the years, ranging from 12.07% in December 31, 2022, to a peak of 30.34% in December 31, 2021. The ROE decreased to 18.90% in December 31, 2023, and further declined to 12.73% by the end of December 31, 2024.
The increase in ROE from 2020 to 2021 indicates that the company was able to generate more profit with the shareholder's equity during that period. However, the subsequent decreases in ROE in the following years may suggest that the company's profitability relative to its equity base has declined.
Overall, Select Medical Holdings needs to analyze the factors contributing to the fluctuation in ROE to identify areas for improvement in profitability and efficiency in utilizing shareholders' equity.
Peer comparison
Dec 31, 2024