Sotera Health Co (SHC)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Net income | US$ in thousands | 51,376 | -233,570 | 116,882 |
| Total stockholders’ equity | US$ in thousands | 443,734 | 350,238 | 586,096 |
| ROE | 11.58% | -66.69% | 19.94% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $51,376K ÷ $443,734K
= 11.58%
Sotera Health Co's Return on Equity (ROE) has shown a fluctuating trend over the past five years. In 2023, the ROE stands at 11.58%, indicating that for every dollar of shareholder's equity, the company generated a profit of 11.58 cents. This is a positive sign compared to the negative ROE of -66.69% in 2022, suggesting an improvement in the company's profitability and efficiency in the utilization of shareholder funds.
The ROE of 19.94% in 2021 reflects a strong performance, showcasing the company's ability to generate higher returns on equity for that year. However, the negative ROE of -8.54% in 2020 implies that the company was not efficient in utilizing its equity to generate profits during that period.
Overall, the fluctuating trend in ROE indicates that Sotera Health Co's performance in generating profits from shareholder equity has been inconsistent over the years. Investors and stakeholders may need to further investigate the factors contributing to these fluctuations to assess the company's financial health and sustainability.
Peer comparison
Dec 31, 2023