PC Connection Inc (CNXN)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 87,095 | 83,271 | 89,219 | 69,906 | 55,765 |
| Total stockholders’ equity | US$ in thousands | 910,990 | 840,767 | 766,175 | 682,473 | 636,327 |
| ROE | 9.56% | 9.90% | 11.64% | 10.24% | 8.76% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $87,095K ÷ $910,990K
= 9.56%
PC Connection Inc's return on equity (ROE) has shown a fluctuating trend over the past five years. Starting at 8.76% as of December 31, 2020, the ROE increased to 10.24% by December 31, 2021, indicating an improvement in the company's profitability in relation to shareholders' equity. This positive momentum continued as the ROE further rose to 11.64% as of December 31, 2022, showcasing a notable surge in the company's ability to generate returns for its shareholders.
However, there was a slight decline in ROE to 9.90% by December 31, 2023, followed by a further decrease to 9.56% by the end of December 2024. These reductions might indicate challenges in sustaining or enhancing the company's profitability relative to its equity base. It is essential for PC Connection Inc to closely evaluate the factors influencing its ROE trend and implement strategic measures to enhance shareholder value in the long run.
Peer comparison
Dec 31, 2024