CDW Corp (CDW)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,104,300 | 1,114,500 | 988,600 | 788,500 | 736,800 |
| Total stockholders’ equity | US$ in thousands | 2,042,500 | 1,603,300 | 705,700 | 1,297,100 | 960,300 |
| ROE | 54.07% | 69.51% | 140.09% | 60.79% | 76.73% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,104,300K ÷ $2,042,500K
= 54.07%
CDW Corp's return on equity (ROE) has exhibited significant fluctuations over the past five years. In 2021, the ROE was notably high at 140.09%, reflecting robust earnings generated relative to shareholders' equity. This substantial ROE indicates efficient utilization of shareholder funds to generate profits.
However, in subsequent years, specifically in 2022 and 2023, the ROE declined to 69.51% and 54.07%, respectively. These lower ROE figures might suggest a decrease in profit generation relative to the equity invested in the company.
Overall, CDW Corp's ROE performance indicates periods of strong profitability followed by moderate declines in recent years. Further analysis into the factors driving these fluctuations would be necessary to understand the company's financial performance accurately.
Peer comparison
Dec 31, 2023