Century Communities Inc (CCS)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	333,817	322,394	322,524	290,245	259,224	247,395	308,718	415,941	525,126	610,602	580,106	539,348	498,504	425,356	361,143	281,683	206,157	167,698	144,958	122,003
Total stockholders’ equity	US$ in thousands	2,620,860	2,547,500	2,465,660	2,419,280	2,386,940	2,292,660	2,221,920	2,171,640	2,150,220	2,072,000	1,951,160	1,829,860	1,764,510	1,601,020	1,488,660	1,373,170	1,280,700	1,184,960	1,129,490	1,084,530
ROE		12.74%	12.66%	13.08%	12.00%	10.86%	10.79%	13.89%	19.15%	24.42%	29.47%	29.73%	29.47%	28.25%	26.57%	24.26%	20.51%	16.10%	14.15%	12.83%	11.25%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $333,817K ÷ $2,620,860K
= 12.74%

Century Communities Inc has shown a fluctuating trend in its return on equity (ROE) over the past few years. The ROE increased steadily from March 31, 2020, at 11.25% to its peak on December 31, 2022, at 28.25%. The company experienced significant growth in ROE during this period, indicating effective utilization of shareholder equity to generate profits.

However, after reaching its peak in December 2022, the ROE started to decline gradually. By September 30, 2024, the ROE had decreased to 12.66%, showing a downward trend in profitability relative to the shareholder equity. This decline may be a cause for concern as it suggests a potential decrease in the company's ability to generate returns for its shareholders.

Overall, while Century Communities Inc demonstrated strong ROE growth initially, investors and analysts should closely monitor the downward trend and assess the factors impacting the company's profitability and shareholder value creation.