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.