Allegion PLC (ALLE)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 540,400 | 557,100 | 515,400 | 488,500 | 458,000 | 435,500 | 464,400 | 468,000 | 483,000 | 463,500 | 466,900 | 421,900 | 314,300 | 301,700 | 286,400 | 322,000 | 401,800 | 453,900 | 438,300 | 442,900 |
| Total stockholders’ equity | US$ in thousands | 1,318,300 | 1,232,100 | 1,138,600 | 1,041,700 | 941,800 | 791,300 | 776,900 | 741,600 | 759,100 | 864,200 | 784,000 | 727,700 | 829,400 | 824,300 | 677,500 | 611,300 | 757,400 | 685,000 | 660,500 | 633,700 |
| ROE | 40.99% | 45.22% | 45.27% | 46.89% | 48.63% | 55.04% | 59.78% | 63.11% | 63.63% | 53.63% | 59.55% | 57.98% | 37.89% | 36.60% | 42.27% | 52.67% | 53.05% | 66.26% | 66.36% | 69.89% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $540,400K ÷ $1,318,300K
= 40.99%
Allegion plc's return on equity (ROE) has shown a declining trend over the quarters presented in the table. The ROE decreased from 63.11% in Q1 2022 to 40.99% in Q4 2023. This indicates a deterioration in the company's ability to generate profit from its shareholders' equity.
The ROE values fluctuated between 40.99% and 48.63% over the quarters, suggesting some volatility in the company's profitability relative to its equity base. While the ROE was highest in Q1 2022 at 63.11%, it has since shown a downward trajectory.
It is important to further investigate the factors contributing to the decreasing ROE to determine if it is a result of declining profitability, asset management efficiency, or increased leverage. Monitoring the trend of ROE over upcoming quarters will help in assessing Allegion plc's financial performance and its ability to deliver returns to shareholders.