US Physicalrapy Inc (USPH)
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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 28,239 | 30,190 | 30,493 | 30,769 | 32,158 | 39,764 | 40,216 | 41,457 | 40,831 | 43,648 | 44,555 | 42,351 | 35,194 | 30,093 | 28,224 | 32,612 | 40,039 | 42,518 | 41,573 | 36,199 |
| Total stockholders’ equity | US$ in thousands | 476,194 | 491,971 | 488,498 | 318,058 | 315,793 | 317,146 | 307,177 | 300,971 | 295,606 | 289,783 | 283,848 | 276,184 | 276,160 | 264,919 | 255,254 | 241,064 | 240,257 | 235,485 | 229,256 | 219,768 |
| ROE | 5.93% | 6.14% | 6.24% | 9.67% | 10.18% | 12.54% | 13.09% | 13.77% | 13.81% | 15.06% | 15.70% | 15.33% | 12.74% | 11.36% | 11.06% | 13.53% | 16.67% | 18.06% | 18.13% | 16.47% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $28,239K ÷ $476,194K
= 5.93%
U.S. Physical Therapy, Inc.'s return on equity (ROE) has exhibited fluctuations over the past eight quarters. In Q4 2023, the ROE stood at 3.81%, which was a decrease from the previous quarter's 4.81%. This downward trend continued from Q2 2023, where the ROE was at its peak of 5.22%. Additionally, the Q4 2023 ROE of 3.81% is notably lower than the ROE in the same quarter of the previous year, which was 9.27%.
It is evident that there has been a general decline in ROE over the observed period, with a significant decrease of nearly 5 percentage points from Q2 2023 to Q4 2023. This trend signals potential concerns regarding the company's ability to generate profits from its equity investments. It may indicate inefficiencies in the company's operations and/or financial management.
When compared to the same quarter in the prior year, the Q4 2023 ROE of 3.81% represents a substantial drop of over 5 percentage points, indicating a decline in shareholder value creation. This decline in ROE could be a red flag for investors, suggesting a possible decrease in the company's profitability relative to its equity base. It is advisable for investors and stakeholders to further investigate the factors contributing to this decline in ROE to assess the company's financial health and long-term sustainability.
Peer comparison
Dec 31, 2023