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Enhabit (Enhabit) ROE % : -3.80% (As of Dec. 2023)


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What is Enhabit ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Enhabit's annualized net income for the quarter that ended in Dec. 2023 was $-26 Mil. Enhabit's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $673 Mil. Therefore, Enhabit's annualized ROE % for the quarter that ended in Dec. 2023 was -3.80%.

The historical rank and industry rank for Enhabit's ROE % or its related term are showing as below:

EHAB' s ROE % Range Over the Past 10 Years
Min: -11.48   Med: 0.89   Max: 7.79
Current: -11.48

During the past 5 years, Enhabit's highest ROE % was 7.79%. The lowest was -11.48%. And the median was 0.89%.

EHAB's ROE % is ranked worse than
73.37% of 612 companies
in the Healthcare Providers & Services industry
Industry Median: 4.115 vs EHAB: -11.48

Enhabit ROE % Historical Data

The historical data trend for Enhabit's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Enhabit ROE % Chart

Enhabit Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
- 5.42 7.79 -3.65 -11.41

Enhabit Quarterly Data
Dec19 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -48.29 1.45 -41.93 -1.42 -3.80

Competitive Comparison of Enhabit's ROE %

For the Medical Care Facilities subindustry, Enhabit's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Enhabit's ROE % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Enhabit's ROE % distribution charts can be found below:

* The bar in red indicates where Enhabit's ROE % falls into.



Enhabit ROE % Calculation

Enhabit's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-80.5/( (741.7+669.7)/ 2 )
=-80.5/705.7
=-11.41 %

Enhabit's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=-25.6/( (676.6+669.7)/ 2 )
=-25.6/673.15
=-3.80 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Enhabit  (NYSE:EHAB) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-25.6/673.15
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-25.6 / 1042.4)*(1042.4 / 1442.25)*(1442.25 / 673.15)
=Net Margin %*Asset Turnover*Equity Multiplier
=-2.46 %*0.7228*2.1425
=ROA %*Equity Multiplier
=-1.78 %*2.1425
=-3.80 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-25.6/673.15
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-25.6 / -29.6) * (-29.6 / 19.6) * (19.6 / 1042.4) * (1042.4 / 1442.25) * (1442.25 / 673.15)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8649 * -1.5102 * 1.88 % * 0.7228 * 2.1425
=-3.80 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Enhabit ROE % Related Terms

Thank you for viewing the detailed overview of Enhabit's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Enhabit (Enhabit) Business Description

Traded in Other Exchanges
Address
6688 N. Central Expressway, Suite 1300, Dallas, TX, USA, 75206
Enhabit Inc provides home health and hospice services in the United States. It offers care where patients prefer it: in their homes. It operates business in two segments: home health and hospice. Its home health agencies provide a comprehensive range of Medicare-certified skilled home health services, including skilled nursing, physical, occupational, and speech therapy, medical social work, and home health aide services.
Executives
Jeffrey Bolton director 1016 CIVIC CENTER DRIVE NW, ROCHESTER MN 55901
Shaw L Edward Jr director AETNA INC, 151 FARMINGTON AVE RC4B, HARTFORD CT 06156
Stuart M Mcguigan director 74 AGAMENTICUS AVENUE, CAPE NEDDICK ME 03902
Barry P. Schochet director 100 EAST RIVERCENTER BLVD, 16TH FLOOR, COVINGTON KY 41011
Dylan C Black officer: General Counsel and Secretary 6688 CENTRAL EXPRESSWAY, SUITE 1300, DALLAS TX 75206
Langham Ronald Leroy Jr officer: EVP Clinical Excel. & Strategy 6688 CENTRAL EXPRESSWAY, SUITE 1300, DALLAS TX 75206
Higdon Leo I Jr director 1700 LINCOLN STREET, 28TH FLOOR, DENVER CO 80203
Gregory S Rush director TEKELEC, 26580 W. AGOURA RD., CALABASAS CA 91302
Tina L. Brown-stevenson director 6688 N. CENTRAL EXPRESSWAY, SUITE 1300, DALLAS TX 75206
Erin Hoeflinger director 511 FALLVIEW COURT, SPRINGBORO OH 45066
Tanya Renee Marion officer: Chief Human Resources Officer 6688 NORTH CENTRAL EXPRESSWAY, SUITE 1300, DALLAS TX 75206
Charles M Elson director 1401 61STG STREET S, STETSON UNIV COLLEGE OF LAW, ST PETERSBURG FL 33707
Barbara Ann Jacobsmeyer director, officer: President and CEO 2122 ACTON PARK WAY, BIRMINGHAM AL 35243
Yvonne M Curl director C/O ENHABIT, INC., 6688 N. CENTRAL EXPRESSWAY, SUITE 1300, DALLAS TX 75206
Maupin John E Jr D D S director 103 POWELL COURT SUITE 200, BRENTWOOD TN 37027