Sotera Health Co (SHC)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 44,388 | 70,746 | 40,098 | 54,857 | 51,376 | -307,024 | -268,274 | -261,369 | -233,570 | 122,146 | 124,500 | 136,681 | 116,882 | 37,205 | 9,771 | -25,811 | -38,617 | -22,837 | -28,482 | -29,156 |
| Total stockholders’ equity | US$ in thousands | 404,911 | 470,163 | 422,764 | 429,392 | 443,734 | 377,471 | 418,367 | 361,125 | 350,238 | 606,729 | 636,000 | 642,130 | 586,096 | 525,769 | 523,271 | 465,744 | 454,574 | -663,858 | -683,704 | -627,507 |
| ROE | 10.96% | 15.05% | 9.48% | 12.78% | 11.58% | -81.34% | -64.12% | -72.38% | -66.69% | 20.13% | 19.58% | 21.29% | 19.94% | 7.08% | 1.87% | -5.54% | -8.50% | — | — | — |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $44,388K ÷ $404,911K
= 10.96%
Sotera Health Co's Return on Equity (ROE) has shown significant fluctuations over the past few years. The company experienced negative ROE in the last quarters of 2020 and through most of 2023, indicating that its net income was insufficient to generate returns for shareholders.
However, there has been a notable improvement in ROE since the beginning of 2021, with positive ROE figures reported in subsequent quarters up to the end of 2024. The positive trend in ROE from March 2021 to December 2022 suggests that the company was able to generate profits more efficiently relative to its shareholders' equity during this period.
Despite the positive trend, there was a sharp decline in ROE in the third quarter of 2023, which recovered to double-digit positive figures by the end of 2023 and continued into 2024. The drop and subsequent recovery may indicate specific challenges or events that affected profitability and equity utilization during that period.
Overall, the recent improvements in ROE demonstrate the company's ability to enhance profitability and efficiency in utilizing shareholder funds. However, the significant fluctuations in ROE highlight the need for Sotera Health Co to maintain a sustainable growth trajectory and effectively manage its financial performance to create long-term value for its shareholders.
Peer comparison
Dec 31, 2024