Deluxe Corporation (DLX)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 26,120 | 65,395 | 62,633 | 5,244 | -223,779 |
| Total stockholders’ equity | US$ in thousands | 604,094 | 603,809 | 574,318 | 540,697 | 570,861 |
| ROE | 4.32% | 10.83% | 10.91% | 0.97% | -39.20% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $26,120K ÷ $604,094K
= 4.32%
Deluxe Corp.'s return on equity (ROE) has varied over the past five years. In 2023, the ROE stands at 4.32%, a decrease from the previous year's 10.82%. The decline in ROE indicates a drop in profitability relative to shareholders' equity. This could suggest that the company's ability to generate profits from its equity investments has weakened.
In 2022 and 2021, Deluxe Corp. had relatively stable ROE figures of 10.82% and 10.90% respectively. This indicates consistent profitability relative to shareholders' equity during those years. The company managed to maintain a healthy return on equity, reflecting efficient use of equity to generate profits.
In 2020, the ROE was 1.62%, a notable decrease from the previous year. This significant drop in ROE may signal issues with profitability and operational efficiency during that period. Furthermore, in 2019, Deluxe Corp. reported a negative ROE of -35.03%, indicating a loss on shareholders' equity. This could be attributed to various factors affecting the company's financial performance, such as operational challenges or exceptional one-off expenses.
Overall, analyzing Deluxe Corp.'s ROE trends over the past five years provides insight into the company's profitability and efficiency in utilizing equity capital. It is essential for investors and stakeholders to monitor changes in ROE to assess the company's financial health and performance over time.