Topbuild Corp (BLD)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 614,254 | 555,989 | 324,016 | 247,023 | 190,995 |
| Total stockholders’ equity | US$ in thousands | 2,563,660 | 1,929,710 | 1,636,430 | 1,348,790 | 1,152,890 |
| ROE | 23.96% | 28.81% | 19.80% | 18.31% | 16.57% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $614,254K ÷ $2,563,660K
= 23.96%
TopBuild Corp's return on equity (ROE) has shown a generally positive trend over the past five years, increasing from 16.57% in 2019 to 23.96% in 2023. This indicates that the company has been effectively utilizing its shareholders' equity to generate profits.
The ROE of 23.96% in 2023 reflects that for every dollar of shareholders' equity invested in the company, it generated a profit of $0.2396. This is a solid performance and demonstrates the company's ability to generate value for its shareholders.
The improvement in ROE over the years suggests that TopBuild Corp has been efficiently managing its assets and liabilities to generate higher returns. However, it is important to note that the ROE fluctuated slightly in some years, indicating potential variations in the company's profitability or financial structure.
Overall, TopBuild Corp's increasing ROE trend is a positive sign of its financial performance and its ability to create shareholder value through effective management and profitability.