Topbuild Corp (BLD)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 614,256 | 611,705 | 597,849 | 577,146 | 555,987 | 490,512 | 432,201 | 378,884 | 324,015 | 316,414 | 290,975 | 256,091 | 247,020 | 222,248 | 207,228 | 203,783 | 190,995 | 183,563 | 171,245 | 146,347 |
| Total stockholders’ equity | US$ in thousands | 2,563,660 | 2,407,830 | 2,238,050 | 2,065,140 | 1,929,710 | 1,834,440 | 1,742,660 | 1,697,240 | 1,636,430 | 1,561,710 | 1,474,820 | 1,396,360 | 1,348,790 | 1,281,590 | 1,217,650 | 1,179,820 | 1,152,890 | 1,165,210 | 1,141,650 | 1,102,850 |
| ROE | 23.96% | 25.40% | 26.71% | 27.95% | 28.81% | 26.74% | 24.80% | 22.32% | 19.80% | 20.26% | 19.73% | 18.34% | 18.31% | 17.34% | 17.02% | 17.27% | 16.57% | 15.75% | 15.00% | 13.27% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $614,256K ÷ $2,563,660K
= 23.96%
TopBuild Corp's Return on Equity (ROE) has shown a generally increasing trend over the past eight quarters. The ROE ranged from 22.32% in Q1 2022 to 27.95% in Q1 2023. The company's highest ROE was recorded in Q4 2022 at 28.81%. This indicates that for every dollar of shareholders' equity, TopBuild Corp generated between 22.32% and 28.81% in net income over the period.
The upward trend in ROE signifies that TopBuild Corp has been effectively utilizing its equity to generate profits. This can be attributed to factors such as improving operational efficiency, effective cost management, or growth in sales and profitability.
Overall, the increasing ROE suggests that TopBuild Corp has been successful in generating higher returns for its shareholders over the quarters under review, reflecting positively on the company's profitability and management effectiveness.