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Acadia Healthcare Co (Acadia Healthcare Co) ROE %

: 8.41% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Acadia Healthcare Co's annualized net income for the quarter that ended in Dec. 2023 was $231 Mil. Acadia Healthcare Co's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $2,747 Mil. Therefore, Acadia Healthcare Co's annualized ROE % for the quarter that ended in Dec. 2023 was 8.41%.

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

ACHC' s ROE % Range Over the Past 10 Years
Min: -30.52   Med: 6.47   Max: 12.2
Current: -0.77

During the past 13 years, Acadia Healthcare Co's highest ROE % was 12.20%. The lowest was -30.52%. And the median was 6.47%.

ACHC's ROE % is ranked worse than
62.34% of 608 companies
in the Healthcare Providers & Services industry
Industry Median: 4.115 vs ACHC: -0.77

Acadia Healthcare Co ROE % Historical Data

The historical data trend for Acadia Healthcare Co'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.

Acadia Healthcare Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.50 -30.52 8.63 10.25 -0.77

Acadia Healthcare Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.80 9.34 10.04 -30.92 8.41

Competitive Comparison

For the Medical Care Facilities subindustry, Acadia Healthcare Co'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.


Acadia Healthcare Co ROE % Distribution

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

* The bar in red indicates where Acadia Healthcare Co's ROE % falls into.



Acadia Healthcare Co ROE % Calculation

Acadia Healthcare Co'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 )
=-21.667/( (2812.727+2781.974)/ 2 )
=-21.667/2797.3505
=-0.77 %

Acadia Healthcare Co'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 )
=230.916/( (2712.562+2781.974)/ 2 )
=230.916/2747.268
=8.41 %

* 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.


Acadia Healthcare Co  (NAS:ACHC) 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
=230.916/2747.268
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(230.916 / 2971.2)*(2971.2 / 5352.5295)*(5352.5295 / 2747.268)
=Net Margin %*Asset Turnover*Equity Multiplier
=7.77 %*0.5551*1.9483
=ROA %*Equity Multiplier
=4.31 %*1.9483
=8.41 %

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
=230.916/2747.268
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (230.916 / 319.86) * (319.86 / 508.088) * (508.088 / 2971.2) * (2971.2 / 5352.5295) * (5352.5295 / 2747.268)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7219 * 0.6295 * 17.1 % * 0.5551 * 1.9483
=8.41 %

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.


Acadia Healthcare Co ROE % Related Terms

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


Acadia Healthcare Co (Acadia Healthcare Co) Business Description

Traded in Other Exchanges
Address
6100 Tower Circle, Suite 1000, Franklin, TN, USA, 37067
Acadia Healthcare Co Inc acquires and develops behavioral healthcare facilities in the United States, United Kingdom, and Puerto Rico. Acute inpatient psychiatric facilities and specialty treatment facilities contribute the vast majority of Acadia's revenue in the United States. The U.S. facilities receive the largest proportion of payments from Medicaid, with the second-largest proportion from commercial payors. In the United Kingdom, the majority of Acadia's revenue comes from its healthcare facilities, and virtually all of the payment received is from the National Health Service.
Executives
Debra K Osteen director, officer: Chief Executive Officer 367 SOUTH GULPH ROAD, KING PRUSSIA PA 19406
John S. Hollinsworth officer: EVP of Operations 6100 TOWER CIRCLE, SUITE 1000, FRANKLIN TN 37067
Patrice A Harris director 514 MARKET ST., PARKERSBURG WV 26101
Brian Farley officer: EVP , GC and Secretary 222 MERCHANDISE MART PLAZA, SUITE 2024, CHICAGO IL 60654
Heather Brianne Dixon officer: Chief Financial Officer AETNA INC., 151 FARMINGTON AVENUE, HARTFORD CT 06156
William Grieco director 830 CRESCENT CENTRE DRIVE, SUITE 610, FRANKLIN TN 37067
William M Petrie director 310 25TH AVENUE NORTH, SUITE 309, NASHVILLE TN 37203
Ralph David Kelly director 4005 WOOD LAKE DRIVE, PLANO TX 75093
Christopher H. Hunter director, officer: Chief Executive Officer 500 W MAIN STREET, LOUISVILLE KY 40202
Reeve B Waud director, 10 percent owner 300 N LASALLE ST, SUITE 4900, CHICAGO IL 60654
David M. Duckworth officer: Chief Financial Officer 830 CRESCENT CENTRE DRIVE, SUITE 610, FRANKLIN TN 37067
Christopher L Howard 10 percent owner, officer: EVP, GC and Secretary 830 CRESCENT CENTRE DRIVE, SUITE 610, FRANKLIN TN 37067
Michael Fucci director 6100 TOWER CIR #1000, FRANKLIN TN 37067
Jason Bernhard director 6100 TOWER CIRCLE, SUITE 1000, FRANKLIN TN 37067
Laurence L. Harrod officer: EVP of Finance 6100 TOWER CIRCLE, SUITE 1000, FRANKLIN TN 37067