Allegion PLC (ALLE)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 597,500 | 540,400 | 458,000 | 483,000 | 314,300 |
| Total stockholders’ equity | US$ in thousands | 1,500,700 | 1,318,300 | 944,500 | 762,400 | 829,400 |
| ROE | 39.81% | 40.99% | 48.49% | 63.35% | 37.89% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $597,500K ÷ $1,500,700K
= 39.81%
Allegion PLC's return on equity (ROE) has demonstrated fluctuating performance over the past five years. Starting at a solid 37.89% on December 31, 2020, Allegion PLC managed to significantly improve its ROE to 63.35% by the end of 2021. However, in the subsequent years, there was some contraction in ROE, declining to 48.49% by the end of 2022, followed by further decreases to 40.99% in 2023 and 39.81% in 2024.
These fluctuations in ROE could indicate various aspects of Allegion PLC's financial performance and operational efficiency. A high ROE suggests that the company is effectively utilizing shareholder equity to generate profit; however, the decreasing trend in later years may raise concerns about the company's ability to sustain or improve its profitability levels relative to shareholder investments.
It is essential for investors and stakeholders to closely monitor Allegion PLC's ROE trends to assess the company's operational effectiveness, financial health, and ability to generate returns for its shareholders. Additional analysis of the underlying factors influencing ROE, such as profitability, asset management, and leverage, would provide further insights into Allegion PLC's overall performance and prospects for future growth and value creation.