Blackbaud Inc (BLKB)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	1,820	-45,407	5,698	7,717	11,908
Total stockholders’ equity	US$ in thousands	808,705	744,032	717,060	426,150	396,764
ROE		0.23%	-6.10%	0.79%	1.81%	3.00%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,820K ÷ $808,705K
= 0.23%

Blackbaud Inc's Return on Equity (ROE) has exhibited fluctuations over the past five years. In 2023, the ROE stands at 0.23%, which indicates a marginal return generated for every dollar of shareholders' equity. Compared to the negative ROE of -6.10% in 2022, there has been an improvement in the company's ability to generate profits relative to shareholders' equity.

However, it is noteworthy that the ROE has been on a decline since 2019 when it was at 3.00%. This trend raises concerns about the company's efficiency in using shareholders' investments to generate profits. A low ROE may suggest inefficiencies or poor financial performance, which could be a cause for further investigation into the company's operations and financial health.

In summary, Blackbaud Inc's ROE has shown volatility in recent years, and while there has been a slight improvement from the previous year, the company may need to focus on strategies to enhance profitability and maximize returns for its shareholders.