The Ensign(Ensg) Financials: Return On Equity Compared To Industry Average, Plus Other Key Ratios
Profitability Trend (Last 5 Years)
Profitability - return on equity
This chart shows the historical trend of return on equity for ENSG compared to its industry average over the recent years.
Ratio Definition and Interpretation
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', ENSG's return on equity was 19.1%, measuring profitability for shareholders. Industry average for Hospital/Nursing Management in '2021' stood at -40.6%.
• In '2022', ENSG's return on equity was 19.8%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Hospital/Nursing Management in '2022' stood at 11.1%. Industry average increased by 51.6% compared to previous year.
• In '2023', ENSG's return on equity was 15.3%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Hospital/Nursing Management in '2023' stood at 2.0%. Industry average declined by 9.0% from previous year.
• In '2024', ENSG's return on equity was 17.9%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Hospital/Nursing Management in '2024' stood at -9.8%. Industry average declined by 11.8% from previous year.
Overall, ENSG'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.