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R1 RCM (R1 RCM) ROE %

: 0.20% (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. R1 RCM's annualized net income for the quarter that ended in Dec. 2023 was $6 Mil. R1 RCM's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $2,747 Mil. Therefore, R1 RCM's annualized ROE % for the quarter that ended in Dec. 2023 was 0.20%.

The historical rank and industry rank for R1 RCM's ROE % or its related term are showing as below:

RCM' s ROE % Range Over the Past 10 Years
Min: -557.35   Med: 20.62   Max: Negative Equity
Current: 0.12

During the past 13 years, R1 RCM's highest ROE % was Negative Equity%. The lowest was -557.35%. And the median was 20.62%.

RCM's ROE % is ranked worse than
60.53% of 608 companies
in the Healthcare Providers & Services industry
Industry Median: 4.115 vs RCM: 0.12

R1 RCM ROE % Historical Data

The historical data trend for R1 RCM'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.

R1 RCM 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 98.36 217.36 41.12 -4.17 0.12

R1 RCM 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 -5.35 0.24 -0.15 0.19 0.20

Competitive Comparison

For the Health Information Services subindustry, R1 RCM'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.


R1 RCM ROE % Distribution

For the Healthcare Providers & Services industry and Healthcare sector, R1 RCM's ROE % distribution charts can be found below:

* The bar in red indicates where R1 RCM's ROE % falls into.



R1 RCM ROE % Calculation

R1 RCM'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 )
=3.3/( (2702.5+2751.4)/ 2 )
=3.3/2726.95
=0.12 %

R1 RCM'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 )
=5.6/( (2743.4+2751.4)/ 2 )
=5.6/2747.4
=0.20 %

* 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.


R1 RCM  (NAS:RCM) 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
=5.6/2747.4
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(5.6 / 2300.4)*(2300.4 / 5000.15)*(5000.15 / 2747.4)
=Net Margin %*Asset Turnover*Equity Multiplier
=0.24 %*0.4601*1.82
=ROA %*Equity Multiplier
=0.11 %*1.82
=0.20 %

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
=5.6/2747.4
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (5.6 / 70) * (70 / 311.2) * (311.2 / 2300.4) * (2300.4 / 5000.15) * (5000.15 / 2747.4)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.08 * 0.2249 * 13.53 % * 0.4601 * 1.82
=0.20 %

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.


R1 RCM ROE % Related Terms

Thank you for viewing the detailed overview of R1 RCM's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


R1 RCM (R1 RCM) Business Description

Traded in Other Exchanges
Address
434 West Ascension Way, 6th Floor, Murray, UT, USA, 84123
R1 RCM Inc is a provider of technology-driven solutions that transform the patient experience and financial performance of healthcare providers. Its services help healthcare providers generate sustainable improvements in their operating margins and cash flows while also enhancing patient, physician, and staff satisfaction for the customers, Its service offering consists of end-to-end RCM services for health systems, hospitals, and physician groups that provide comprehensive revenue cycle infrastructure to providers, including all revenue cycle personnel, technology solutions, and process workflow. The majority of the revenue comes from the operating fees received.
Executives
Dominic Nakis director 433 W ASCENSION WAY, SUITE 200, MURRAY UT 84123
Henneman John B Iii director 311 C ENTERPRISE DRIVE, PLAINSBORO NJ 08536
Evans Richard B. Jr. officer: Principal Accounting Officer C/O ACCRETIVE HEALTH, INC., 401 N. MICHIGAN AVENUE, SUITE 2700, CHICAGO IL 60611
John M. Sparby officer: See Remarks C/O R1 RCM INC., 401 N. MICHIGAN AVENUE, SUITE 2700, CHICAGO IL 60611
Lee Rivas officer: President C/O R1 RCM INC., 434 W. ASCENSION WAY, 6TH FLOOR, MURRAY UT 84123
Kyle Hicok officer: Chief Commercial Officer 434 W. ASCENSION WAY, 6TH FLOOR, MURRAY UT 84123
Jennifer D. Williams officer: Chief Financial Officer 434 W. ASCENSION WAY, 6TH FLOOR, MURRAY UT 84123
Janie Wade director C/O R1 RCM INC., 434 W. ASCENSION WAY, 6TH FLOOR, MURRAY UT 84123
Tcp-asc Achi Series Lllp director, 10 percent owner 65 E 55TH ST 27TH FLOOR, TOWERBROOK CAPITAL PARTNERS L.P., NEW YORK NY 10022
Joseph Gerard Flanagan director, officer: Chief Executive Officer C/O NORTEL NETWORKS CORPORATION, 195 THE WEST MALL, TORONTO A6 M9C 5K1
Brian K. Dean director R1 RCM INC., 434 W. ASCENSION WAY, 6TH FLOOR, MURRAY UT 84123
Gary Steven Long officer: See Remarks 7050 BRIXTON PLACE, SUWANEE GA 30024
Michael C. Feiner director 1166 AVENUE OF THE AMERICAS, 3RD FLOOR, NEW YORK NY 10036
Matthew S. Holt director C/O NEW MOUNTAIN CAPITAL, LLC, 787 SEVENTH AVENUE, 49TH FLOOR, NEW YORK NY 10019
Bradford Kyle Armbrester director 311 ARSENAL STREET, WATERTOWN MA 02472