BJs Restaurants Inc (BJRI)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	19,660	4,076	-3,606	-57,885	45,238
Total stockholders’ equity	US$ in thousands	365,761	345,515	333,771	293,788	290,287
ROE		5.38%	1.18%	-1.08%	-19.70%	15.58%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $19,660K ÷ $365,761K
= 5.38%

The return on equity (ROE) of BJs Restaurants Inc has shown fluctuations over the past five years. In 2023, the ROE increased to 5.38% from 1.18% in 2022, indicating an improvement in the company's profitability in generating returns for its shareholders. However, it is still below the levels seen in 2019 and 2020.

The ROE was negative in 2021 and 2020, implying that the company incurred losses during those years. The substantial negative ROE of -19.70% in 2020 indicates that BJs Restaurants Inc faced significant challenges in generating profits relative to its shareholders' equity.

The positive ROE of 15.58% in 2019 reflects a strong profitability performance, demonstrating the company's ability to effectively utilize shareholders' equity to generate profits during that period.

In conclusion, while the recent increase in ROE is a positive sign, BJs Restaurants Inc needs to continue focusing on improving its profitability and efficiency in utilizing shareholder equity to enhance long-term shareholder value.