Topbuild Corp (BLD)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 622,602 | 614,254 | 555,989 | 324,016 | 247,023 |
| Total stockholders’ equity | US$ in thousands | 2,209,620 | 2,563,660 | 1,929,710 | 1,636,430 | 1,348,790 |
| ROE | 28.18% | 23.96% | 28.81% | 19.80% | 18.31% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $622,602K ÷ $2,209,620K
= 28.18%
Based on the data provided, Topbuild Corp's return on equity (ROE) has shown a positive trend over the years. The ROE increased from 18.31% in December 31, 2020, to 28.18% by December 31, 2024. This indicates that the company has been efficiently utilizing its shareholders' equity to generate profits.
The improvement in ROE signifies that Topbuild Corp is becoming more effective in generating profits from the capital invested by its shareholders. A higher ROE is generally considered a positive sign, as it suggests that the company is delivering better returns to its shareholders.
It is important to note that while the increasing trend in ROE is favorable, analysts should also evaluate the company's overall financial performance and compare its ROE with industry peers to get a more comprehensive view of its financial health and efficiency in generating profits.