Sotera Health Co (SHC)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 51,376 | -307,024 | -268,274 | -261,369 | -233,570 | 122,146 | 124,500 | 136,681 | 116,882 | |||
| Total stockholders’ equity | US$ in thousands | 443,734 | 377,471 | 418,367 | 361,125 | 350,238 | 606,729 | 636,000 | 642,130 | 586,096 | 525,769 | 523,271 | 463,264 |
| ROE | 11.58% | -81.34% | -64.12% | -72.38% | -66.69% | 20.13% | 19.58% | 21.29% | 19.94% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $51,376K ÷ $443,734K
= 11.58%
Sotera Health Co's return on equity (ROE) has been fluctuating significantly over the past eight quarters, ranging from as high as 20.14% in Q3 2022 to as low as -81.15% in Q3 2023. The ROE in the most recent quarter, Q4 2023, stood at 11.58%.
The negative ROE figures in multiple quarters, especially in Q3 2023, Q2 2023, and Q1 2023, indicate that the company's net income was insufficient to cover the shareholders' equity, resulting in a deficit. This could be concerning as it may signal operational inefficiencies, high financial leverage, or poor profitability.
However, the positive ROE figures in Q3 2022, Q2 2022, and Q1 2022 suggest that the company was generating reasonable profits relative to its equity during those periods. It is essential to investigate the root causes behind the negative ROE trends in recent quarters to determine any underlying issues affecting the company's profitability and financial health.
Peer comparison
Dec 31, 2023