Alamo Group Inc (ALG)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 136,161 | 101,928 | 80,245 | 57,804 | 63,103 |
| Total stockholders’ equity | US$ in thousands | 932,763 | 785,360 | 705,663 | 635,003 | 577,943 |
| ROE | 14.60% | 12.98% | 11.37% | 9.10% | 10.92% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $136,161K ÷ $932,763K
= 14.60%
Alamo Group Inc.'s return on equity (ROE) has shown a consistent upward trend over the past five years. The ROE increased from 11.04% in 2019 to 14.60% in 2023, indicating an improvement in the company's ability to generate profits from shareholder equity. This suggests that the company has been effectively utilizing its equity to generate returns for shareholders.
The increasing trend in ROE reflects positively on Alamo Group's operational efficiency and profitability levels. The company has been able to effectively manage its assets and liabilities to generate higher returns for shareholders over the years.
Overall, the steady improvement in Alamo Group's ROE signifies a positive performance in terms of generating profits relative to the equity invested by shareholders. Investors may view this trend favorably as it indicates the company's ability to generate higher returns on their investment.
Peer comparison
Dec 31, 2023