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LifePoint Health (LifePoint Health) ROE % : 3.93% (As of Sep. 2018)


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What is LifePoint Health ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. LifePoint Health's annualized net income for the quarter that ended in Sep. 2018 was $89 Mil. LifePoint Health's average Total Stockholders Equity over the quarter that ended in Sep. 2018 was $2,271 Mil. Therefore, LifePoint Health's annualized ROE % for the quarter that ended in Sep. 2018 was 3.93%.

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

LPNT's ROE % is not ranked *
in the Healthcare Providers & Services industry.
Industry Median: 4.115
* Ranked among companies with meaningful ROE % only.

LifePoint Health ROE % Historical Data

The historical data trend for LifePoint Health'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.

LifePoint Health ROE % Chart

LifePoint Health Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.02 5.78 8.23 5.49 4.63

LifePoint Health Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.82 -4.86 -1.58 9.40 3.93

Competitive Comparison of LifePoint Health's ROE %

For the Medical Care Facilities subindustry, LifePoint Health'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.


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

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

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



LifePoint Health ROE % Calculation

LifePoint Health's annualized ROE % for the fiscal year that ended in Dec. 2017 is calculated as

ROE %=Net Income (A: Dec. 2017 )/( (Total Stockholders Equity (A: Dec. 2016 )+Total Stockholders Equity (A: Dec. 2017 ))/ count )
=102.4/( (2180.4+2242.5)/ 2 )
=102.4/2211.45
=4.63 %

LifePoint Health's annualized ROE % for the quarter that ended in Sep. 2018 is calculated as

ROE %=Net Income (Q: Sep. 2018 )/( (Total Stockholders Equity (Q: Jun. 2018 )+Total Stockholders Equity (Q: Sep. 2018 ))/ count )
=89.2/( (2247.3+2294.4)/ 2 )
=89.2/2270.85
=3.93 %

* 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 (Sep. 2018) net income data. ROE % is displayed in the 30-year financial page.


LifePoint Health  (NAS:LPNT) 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: Sep. 2018 )
=Net Income/Total Stockholders Equity
=89.2/2270.85
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(89.2 / 6228)*(6228 / 6246.5)*(6246.5 / 2270.85)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.43 %*0.997*2.7507
=ROA %*Equity Multiplier
=1.43 %*2.7507
=3.93 %

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: Sep. 2018 )
=Net Income/Total Stockholders Equity
=89.2/2270.85
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (89.2 / 15.6) * (15.6 / 296.4) * (296.4 / 6228) * (6228 / 6246.5) * (6246.5 / 2270.85)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 5.7179 * 0.0526 * 4.76 % * 0.997 * 2.7507
=3.93 %

Note: The net income data used here is four times the quarterly (Sep. 2018) net income data. The Revenue data used here is four times the quarterly (Sep. 2018) 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.


LifePoint Health ROE % Related Terms

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


LifePoint Health (LifePoint Health) Business Description

Traded in Other Exchanges
N/A
Address
LifePoint Health owns and operates community hospitals, regional health systems, physician practices, outpatient centers, and post-acute facilities in the United States. The firm primarily generates revenue through hospital services offered at its facilities. These services include general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, rehabilitation services, and pediatric services. LifePoint receives the majority of its revenue from health maintenance organizations (HMOs), preferred provider organizations (PPOs), and other private insurers. It receives the next largest proportion of revenue from Medicare and Medicaid.
Executives
Kermit R Crawford director 200 WILMOT ROAD, DEERFIELD IL 60015
Jana R Schreuder director 50 S LA SALLE ST, CHICAGO IL 60675
Reed Vaughn Tuckson director C/O UNITEDHEALTH GROUP INCORPORATED, 9900 BREN ROAD EAST, MINNETONKA MN 55123
Michael P Haley director 200 NORTH HAMILTON STREET, NO. 200, HIGH POINT NC 27260
Marguerite Sallee director C/O BRIGHT HORIZONS FAMILY SOLUTIONS INC, 200 TALCOTT AVENUE SOUTH, WATERTOWN MA 02472
Carpenter William F Iii director, officer: Chairman and CEO C/O FB FINANCIAL CORP, 211 COMMERCE STREET, SUITE 300, NASHVILLE TN 37201
Maupin John E Jr D D S director 103 POWELL COURT SUITE 200, BRENTWOOD TN 37027
Paul D Gilbert officer: EVP, Chief Legal Officer 103 POWELL COURT, SUITE 200, BRENTWOOD TN 37027
Gregory T. Bier director CINCINNATI FINANCIAL CORPORATION, P.O. BOX 145496, CINCINNATI OH 45250-5496
Marilyn B Tavenner director 13600 BUTLERS ROAD, AMELIA COURT HOUSE VA 23002
Jeffrey Scott Sherman officer: EVP and CFO 103 POWELL COURT, SUITE 200, BRENTWOOD TN 37027
Gary D Willis officer: SVP,Chief Accounting Officer 3854 AMERICAN WAY, SUITE A, BATON ROUGE LA 70816