Columbia Sportswear Company (COLM)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	251,400	283,750	291,992	290,805	311,440	342,711	331,524	365,045	354,108	292,903	255,091	163,700	108,013	126,282	182,789	256,525	330,489	329,724	310,618	297,326
Total stockholders’ equity	US$ in thousands	1,938,610	1,895,310	1,874,660	1,947,780	1,935,790	1,814,800	1,731,720	1,818,900	1,989,250	1,880,320	1,861,660	1,868,810	1,832,770	1,722,820	1,652,830	1,696,590	1,849,450	1,747,110	1,655,190	1,720,650
ROE		12.97%	14.97%	15.58%	14.93%	16.09%	18.88%	19.14%	20.07%	17.80%	15.58%	13.70%	8.76%	5.89%	7.33%	11.06%	15.12%	17.87%	18.87%	18.77%	17.28%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $251,400K ÷ $1,938,610K
= 12.97%

Columbia Sportswear Co.'s return on equity (ROE) has shown a consistent downward trend over the past eight quarters, decreasing from 20.07% in Q1 2022 to 12.97% in Q4 2023. This decreasing trend indicates that the company's ability to generate profits from shareholders' equity has weakened over time.

The peak ROE of 20.07% was achieved in Q1 2022, after which a gradual decline was observed in subsequent quarters. The most recent ROE of 12.97% in Q4 2023 is the lowest among the presented data points, signaling a potential concern for shareholders regarding the company's profitability relative to the equity invested.

The fluctuations in ROE could be attributed to various factors such as changes in revenue growth, cost management, debt levels, or efficiency of asset utilization. It is crucial for stakeholders to closely monitor these metrics and understand the underlying reasons for the fluctuating ROE to make informed investment decisions.