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Option Care Health (Option Care Health) ROE %

: 15.98% (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. Option Care Health's annualized net income for the quarter that ended in Dec. 2023 was $229 Mil. Option Care Health's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1,431 Mil. Therefore, Option Care Health's annualized ROE % for the quarter that ended in Dec. 2023 was 15.98%.

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

OPCH' s ROE % Range Over the Past 10 Years
Min: -441.6   Med: -0.84   Max: 19.03
Current: 18.88

During the past 13 years, Option Care Health's highest ROE % was 19.03%. The lowest was -441.60%. And the median was -0.84%.

OPCH's ROE % is ranked better than
85.08% of 610 companies
in the Healthcare Providers & Services industry
Industry Median: 4.115 vs OPCH: 18.88

Option Care Health ROE % Historical Data

The historical data trend for Option Care 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.

Option Care Health Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -19.91 -0.84 12.77 11.75 19.03

Option Care Health Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.96 11.46 32.39 15.45 15.98

Competitive Comparison

For the Medical Care Facilities subindustry, Option Care 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.


Option Care Health ROE % Distribution

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

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



Option Care Health ROE % Calculation

Option Care Health'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 )
=267.09/( (1386.103+1421.672)/ 2 )
=267.09/1403.8875
=19.03 %

Option Care Health'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 )
=228.708/( (1440.083+1421.672)/ 2 )
=228.708/1430.8775
=15.98 %

* 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.


Option Care Health  (NAS:OPCH) 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
=228.708/1430.8775
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(228.708 / 4497.56)*(4497.56 / 3230.3255)*(3230.3255 / 1430.8775)
=Net Margin %*Asset Turnover*Equity Multiplier
=5.09 %*1.3923*2.2576
=ROA %*Equity Multiplier
=7.09 %*2.2576
=15.98 %

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
=228.708/1430.8775
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (228.708 / 315.7) * (315.7 / 338.224) * (338.224 / 4497.56) * (4497.56 / 3230.3255) * (3230.3255 / 1430.8775)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7244 * 0.9334 * 7.52 % * 1.3923 * 2.2576
=15.98 %

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.


Option Care Health ROE % Related Terms

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


Option Care Health (Option Care Health) Business Description

Traded in Other Exchanges
Address
3000 Lakeside Drive, Suite 300N, Bannockburn, IL, USA, 60015
Option Care Health Inc is the provider of home and alternate-site infusion services. It provides treatment for bleeding disorders, neurological disorders, heart failure, anti-infectives, and chronic inflammatory disorders among others.
Executives
Elizabeth D Bierbower director HUMANA INC., 500 W. MAIN ST., LOUISVILLE KY 40202
R Carter Pate director 5739 WORTHAM LANE, DALLAS TX 75252
Smyser Collin officer: Gen. Counsel & Corp. Secy. C/O OPTION CARE HEALTH, 3000 LAKESIDE DR. SUITE 300N, BANNOCKBURN IL 60015
Kraemer Harry M Jansen Jr director DENTSPLY SIRONA INC., 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Michael Bavaro officer: Chief Human Resources Officer 3000 LAKESIDE DRIVE, SUITE 300N, BANNOCKBURN IL 60015
Luke Whitworth officer: Chief Operating Officer 3000 LAKESIDE DRIVE, SUITE 300N, BANNOCKBURN IL 60015
Walgreens Boots Alliance, Inc. 10 percent owner 108 WILMOT ROAD, DEERFIELD IL 60015
Hc Group Holdings I, Llc 10 percent owner THREE FIRST NATIONAL PLAZA, SUITE 4600, CHICAGO IL 60602
Wba Investments, Inc. 10 percent owner 108 WILMOT ROAD, DEERFIELD IL 60015
Och Us Holding Llc 10 percent owner 200 WILMOT ROAD, DEERFIELD IL 60015
Wba Us 1 Co. 10 percent owner 180 WILMOT ROAD, DEERFIELD IL 60015
Harriet Booker officer: CHIEF OPERATING OFFICER C/O BIOSCRIP, INC., 1600 BROADWAY, SUITE 700, DENVER CO 80202
Natasha Deckmann director 7114 EAST STETSON DRIVE, SUITE 400, SCOTTSDALE AZ 85251
Anita M. Allemand director 3000 LAKESIDE DRIVE, SUITE 300N, BANNOCKBURN IL 60015
Aaron Friedman director 3000 LAKESIDE DRIVE, SUITE 300N, BANNOCKBURN IL 60015