Alamo Group Inc (ALG)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 115,930 | 119,372 | 126,882 | 134,932 | 136,161 | 133,803 | 124,709 | 116,807 | 101,928 | 91,990 | 83,688 | 81,253 | 80,245 | 69,098 | 71,612 | 58,564 | 56,630 | 58,118 | 55,503 | 63,181 |
| Total stockholders’ equity | US$ in thousands | 1,018,250 | 1,017,720 | 979,716 | 956,556 | 932,763 | 887,734 | 865,942 | 822,348 | 785,360 | 737,031 | 736,442 | 727,180 | 705,663 | 691,662 | 671,881 | 641,881 | 625,643 | 605,213 | 577,151 | 560,409 |
| ROE | 11.39% | 11.73% | 12.95% | 14.11% | 14.60% | 15.07% | 14.40% | 14.20% | 12.98% | 12.48% | 11.36% | 11.17% | 11.37% | 9.99% | 10.66% | 9.12% | 9.05% | 9.60% | 9.62% | 11.27% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $115,930K ÷ $1,018,250K
= 11.39%
The Return on Equity (ROE) is a key financial ratio that measures a company's profitability in relation to its shareholders' equity. Looking at the ROE trend for Alamo Group Inc over the period from March 31, 2020, to December 31, 2024, we see fluctuations in the ratio.
Initially, Alamo Group Inc's ROE was 11.27% in March 2020, indicating that the company generated $11.27 in net income for every $100 of shareholders' equity. The ROE declined to 9.62% in June 2020 and further decreased to 9.05% by December 2020. This downward trend suggests a decrease in profitability relative to shareholders' investment during this period.
However, there was a slight improvement in ROE to 10.66% by June 2021, indicating a better return on equity. Subsequently, the ROE fluctuated but generally stayed around the 10% mark, with peaks in September 2022 (12.48%) and December 2022 (12.98%).
The ROE saw a significant increase to 15.07% in September 2023, reflecting a higher profitability relative to shareholders' equity. This was followed by a slight dip in December 2023 to 14.60% but still remained at a relatively high level. The trend continued to show solid performance with ROE hovering above 10% until December 31, 2024, where it was reported at 11.39%.
Overall, Alamo Group Inc's ROE performance indicates fluctuations over the period, with some years showing improved profitability relative to shareholders' equity, while others experienced slight declines. A higher ROE suggests more efficient use of equity capital to generate profits, while a lower ROE may indicate inefficiency or increased leverage. It is important for investors and stakeholders to closely monitor ROE trends to evaluate the company's financial health and performance.
Peer comparison
Dec 31, 2024