ASGN Inc (ASGN)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 175,200 219,300 268,100 409,900 200,300
Total stockholders’ equity US$ in thousands 1,776,700 1,892,100 1,901,300 1,865,400 1,587,100
ROE 9.86% 11.59% 14.10% 21.97% 12.62%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $175,200K ÷ $1,776,700K
= 9.86%

ASGN Inc's return on equity (ROE) has exhibited fluctuating trends over the past five years. Starting at 12.62% on December 31, 2020, the ROE increased significantly to 21.97% by December 31, 2021, indicating an improvement in the company's ability to generate profit from shareholders' equity.

However, the ROE dropped to 14.10% by December 31, 2022, reflecting a decrease in profitability relative to the equity invested in the company. This decline continued as the ROE further decreased to 11.59% by December 31, 2023, and notably dropped to 9.86% by December 31, 2024.

The decreasing trend in ROE indicates a decline in the company's profitability in relation to shareholders' equity over the years. It may suggest potentially inefficient use of equity capital or declining profitability compared to the level of equity investment. Further analysis of the company's financial performance and operational efficiency may be warranted to better understand the factors influencing this downward trend in ROE.

In conclusion, ASGN Inc's ROE has shown variability over the past five years, with a mix of increases and decreases. It is important for stakeholders to closely monitor this ratio and investigate the underlying reasons for the fluctuations to ensure sustainable and profitable growth in the future.