PC Connection Inc (CNXN)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 83,271 | 89,219 | 69,906 | 55,765 | 82,111 |
| Total stockholders’ equity | US$ in thousands | 840,767 | 766,175 | 682,473 | 636,327 | 597,312 |
| ROE | 9.90% | 11.64% | 10.24% | 8.76% | 13.75% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $83,271K ÷ $840,767K
= 9.90%
PC Connection Inc's return on equity (ROE) has fluctuated over the past five years. In 2023, the company's ROE was 9.90%, a decrease from the previous year's ROE of 11.64%. This decline suggests that the company's net income generated for each dollar of shareholder's equity invested has decreased.
Despite the decrease in 2023, PC Connection Inc's ROE has generally been relatively stable over the five-year period, ranging from 8.76% in 2020 to 13.75% in 2019. The company's ROE of 10.24% in 2021 falls within this range.
A lower ROE may indicate a less efficient use of shareholders' equity to generate profits, while a higher ROE suggests that the company is able to generate more profit from the equity provided by shareholders. PC Connection Inc's ROE performance should be further analyzed in conjunction with other financial metrics to assess the overall financial health and efficiency of the company.
Peer comparison
Dec 31, 2023