Api Group Corp (APG)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 250,000 | 153,000 | 73,000 | 47,000 | -153,000 |
| Total stockholders’ equity | US$ in thousands | 2,953,000 | 2,868,000 | 2,127,000 | 2,323,000 | 1,558,000 |
| ROE | 8.47% | 5.33% | 3.43% | 2.02% | -9.82% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $250,000K ÷ $2,953,000K
= 8.47%
The provided data indicates a progressive improvement in Api Group Corp’s return on equity (ROE) over the specified period from December 31, 2020, to December 31, 2024.
In 2020, the company reported a negative ROE of -9.82%, signaling that the firm experienced a period of substantial net losses relative to shareholders’ equity, potentially due to operational challenges, market conditions, or one-time expenses. This negative figure reflects an unfavorable profitability position which likely impacted shareholder confidence and valuation during that year.
By the end of 2021, there was a significant turnaround with ROE increasing to 2.02%. This shift suggests some degree of operational improvement or strategic initiatives beginning to yield positive results, leading to a shift from a loss position to modest profitability. Although modest, this positive ROE marks a crucial turning point in the company's financial performance.
The upward trend continues into 2022, with ROE reaching 3.43%. The incremental increase indicates ongoing enhancements in profitability margins, operational efficiency, or both, contributing to greater returns generated on shareholders’ equity. The company appears to be consolidating its recovery efforts and gaining traction in its core operations.
In 2023, the ROE further advanced to 5.33%, reflecting sustained growth in profitability. This sustained improvement might be a result of increased revenues, better cost management, or favorable market conditions. The progression suggests that the company’s strategic initiatives are effectively translating into higher income relative to equity.
By 2024, the ROE increased to 8.47%, approaching a level that indicates a considerable enhancement in shareholder returns relative to shareholders’ equity. While still below industry or historical peak levels, the steady increase over four years highlights a positive trajectory of financial performance and operational resilience.
Overall, the data illustrates a trajectory of recovery and growth in Api Group Corp’s ROE, transitioning from a negative figure in 2020 to a positive and improving figure in subsequent years. This trend signals improving profitability, operational efficiency, and potentially enhanced investor confidence, positioning the company towards a more sustainable and profitable future.
Peer comparison
Dec 31, 2024