Sotera Health Co (SHC)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 44,398 | 51,376 | -233,570 | 116,882 | -37,491 |
| Total stockholders’ equity | US$ in thousands | 404,911 | 443,734 | 350,238 | 586,096 | 454,574 |
| ROE | 10.96% | 11.58% | -66.69% | 19.94% | -8.25% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $44,398K ÷ $404,911K
= 10.96%
Sotera Health Co's return on equity (ROE) has displayed significant fluctuations over the years, indicating varying levels of profitability and efficiency in utilizing shareholder equity. The ROE was negative at -8.25% as of December 31, 2020, reflecting a period of unprofitability and potential inefficiencies in generating returns for shareholders.
However, there was a notable improvement in ROE to 19.94% by December 31, 2021, suggesting enhanced profitability and better management of equity resources. Subsequently, there was a sharp decline in ROE to -66.69% by December 31, 2022, signaling a significant downturn in profitability and potential financial challenges during that period.
The company's performance improved again with an ROE of 11.58% by December 31, 2023, indicating a partial recovery in profitability and efficiency. This positive trend continued with a slightly lower but still healthy ROE of 10.96% by December 31, 2024, demonstrating continued efforts to generate returns for shareholders.
Overall, Sotera Health Co's ROE has shown both strengths and weaknesses over the years, with fluctuations reflecting the company's ability to generate profits relative to shareholder equity. Analyzing the factors driving these changes can provide insights into the company's financial performance and potential areas for improvement.
Peer comparison
Dec 31, 2024