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Omega Healthcare Investors (Omega Healthcare Investors) ROE %

: 6.07% (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. Omega Healthcare Investors's annualized net income for the quarter that ended in Dec. 2023 was $220.0 Mil. Omega Healthcare Investors's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $3,621.8 Mil. Therefore, Omega Healthcare Investors's annualized ROE % for the quarter that ended in Dec. 2023 was 6.07%.

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

OHI' s ROE % Range Over the Past 10 Years
Min: 2.71   Med: 8.87   Max: 16.39
Current: 6.74

During the past 13 years, Omega Healthcare Investors's highest ROE % was 16.39%. The lowest was 2.71%. And the median was 8.87%.

OHI's ROE % is ranked better than
64.62% of 800 companies
in the REITs industry
Industry Median: 4.25 vs OHI: 6.74

Omega Healthcare Investors ROE % Historical Data

The historical data trend for Omega Healthcare Investors'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.

Omega Healthcare Investors 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 9.00 3.99 10.76 11.36 6.74

Omega Healthcare Investors 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 4.99 4.05 6.72 10.02 6.07

Competitive Comparison

For the REIT - Healthcare Facilities subindustry, Omega Healthcare Investors'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.


Omega Healthcare Investors ROE % Distribution

For the REITs industry and Real Estate sector, Omega Healthcare Investors's ROE % distribution charts can be found below:

* The bar in red indicates where Omega Healthcare Investors's ROE % falls into.



Omega Healthcare Investors ROE % Calculation

Omega Healthcare Investors'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 )
=242.18/( (3609.368+3574.584)/ 2 )
=242.18/3591.976
=6.74 %

Omega Healthcare Investors'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 )
=220.004/( (3668.993+3574.584)/ 2 )
=220.004/3621.7885
=6.07 %

* 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.


Omega Healthcare Investors  (NYSE:OHI) 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
=220.004/3621.7885
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(220.004 / 957.276)*(957.276 / 9271.3575)*(9271.3575 / 3621.7885)
=Net Margin %*Asset Turnover*Equity Multiplier
=22.98 %*0.1033*2.5599
=ROA %*Equity Multiplier
=2.37 %*2.5599
=6.07 %

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
=220.004/3621.7885
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (220.004 / 247.288) * (247.288 / 435.952) * (435.952 / 957.276) * (957.276 / 9271.3575) * (9271.3575 / 3621.7885)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8897 * 0.5672 * 45.54 % * 0.1033 * 2.5599
=6.07 %

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.


Omega Healthcare Investors ROE % Related Terms

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


Omega Healthcare Investors (Omega Healthcare Investors) Business Description

Traded in Other Exchanges
Address
303 International Circle, Suite 200, Hunt Valley, MD, USA, 21030
Omega Healthcare Investors Inc is a healthcare facility real estate investment trust that invests in the United States real estate markets. Omega's portfolio focuses on long-term healthcare facilities. The company maintains dual goals of increasing its returns to investors while also maintaining a high level of care for residents. Omega works to obtain contractual rent escalations under long-term leases, along with fixed-rate mortgage loans. The company considers merger and acquisition investment as a component of its operational growth strategy.
Executives
Gail D Makode officer: Chief Legal Officer ONE SOUND SHORE DR, SUITE 304, GREENWICH CT 06830
Kapila K Anand director C/O EXTENDED STAY AMERICA, INC., 11525 N. COMMUNITY HOUSE ROAD, SUITE 100, CHARLOTTE NC 28277
Neal Ballew officer: Chief Accounting Officer 303 INTERNATIONAL CIRCLE, SUITE 200, HUNT VALLEY MD 21030
Burke W Whitman director 13455 NOEL ROAD # 2000, DALLAS TX 75240
Lisa Egbuonu-davis director C/O OMEGA HEALTHCARE INVESTORS, INC., 303 INTERNATIONAL CIRCLE, SUITE 200, HUNT VALLEY MD 21030
Steven J Insoft officer: Chief Corp Development Officer
Daniel J Booth officer: Chief Operating Officer 9690 DEERECO ROAD, SUITE 100, TIMONIUM MD 21093
Robert O Stephenson officer: Chief Financial Officer C/O OMEGA HEALTHCARE INVESTORS, 9690 DEERECO ROAD, SUITE 100, TIMONIUM MD 21093
C Taylor Pickett director, officer: Chief Executive Officer C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046
Kevin J Jacobs director 7930 JONES BRANCH DRIVE, MCLEAN VA 22102
Michael Ritz officer: Chief Accounting Officer 9690 DEERECO ROAD, SUITE 100, TIMONIUM MD 21131
Craig R Callen director 7902 WESTPARK DR, C/O SUNRISE ASSISTED LIVING, MCLEAN VA 22102
Ben W Perks director
Bernard J Korman director OMEGA HEALTHCARE INVESTORS INC, ANN ARBOR MI 48108
Craig M Bernfield director 303 WEST MADISON STREET, SUITE 2400, CHICAGO IL 60606