Cable One Inc (CABO)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 267,436 | 234,118 | 291,824 | 304,391 | 178,582 |
| Total stockholders’ equity | US$ in thousands | 1,873,140 | 1,757,970 | 1,793,100 | 1,495,300 | 841,569 |
| ROE | 14.28% | 13.32% | 16.27% | 20.36% | 21.22% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $267,436K ÷ $1,873,140K
= 14.28%
Cable One Inc's return on equity (ROE) has shown a declining trend over the past five years, decreasing from 21.22% in 2019 to 14.28% in 2023. The ROE indicates how efficiently the company is utilizing its equity to generate profits for shareholders.
The decrease in ROE may be attributed to various factors such as increased expenses, declining net income, or changes in the company's capital structure. The lower ROE in recent years suggests that the company's profitability and efficiency in generating returns for shareholders have declined.
Investors and analysts may want to further investigate the reasons behind the decreasing ROE to evaluate the company's financial performance and sustainability in the long run. It is essential for Cable One Inc to focus on improving its operational efficiency and profitability to enhance its return on equity in the future.
Peer comparison
Dec 31, 2023