Name: Return on Equity (ROE)

Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.

Interpretation:
• In '2021', ADUS's return on equity was 7.9%, measuring profitability for shareholders. Industry average for Medical/Nursing Services in '2021' stood at -7.1%.
• In '2022', ADUS's return on equity was 7.6%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2022' stood at -58.6%. Industry average declined by 51.5% from previous year.
• In '2023', ADUS's return on equity was 9.3%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Medical/Nursing Services in '2023' stood at 3.8%. Industry average increased by 62.4% compared to previous year.
• In '2024', ADUS's return on equity was 8.8%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2024' stood at -1.4%. Industry average declined by 5.2% from previous year.
Overall, ADUS's return on equity has remained generally stable over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.