Deluxe Corporation (DLX)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 52,802 | 26,120 | 65,395 | 62,633 | 8,800 |
| Total stockholders’ equity | US$ in thousands | 620,918 | 604,094 | 604,200 | 574,600 | 540,800 |
| ROE | 8.50% | 4.32% | 10.82% | 10.90% | 1.63% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $52,802K ÷ $620,918K
= 8.50%
The return on equity (ROE) for Deluxe Corporation has shown fluctuations over the past five years. In December 2020, the ROE was at a low of 1.63%, indicating that the company's profitability in relation to shareholders' equity was relatively weak. However, there was a significant improvement in December 2021, with the ROE increasing to 10.90%, suggesting more efficient utilization of equity to generate profits.
The trend continued in December 2022, where the ROE remained relatively stable at 10.82%, reflecting ongoing positive performance in generating returns for shareholders. However, there was a notable decline in December 2023, with the ROE dropping to 4.32%, which may indicate some challenges or inefficiencies impacting profitability during that period.
By December 2024, the ROE had improved to 8.50%, although it was still below the levels seen in 2021 and 2022. This suggests that Deluxe Corporation continued to work on enhancing its profitability and efficiency, but there may be room for further improvement to reach the peak levels achieved previously.
Overall, Deluxe Corporation's ROE performance has been variable over the past five years, indicating fluctuations in the company's ability to generate returns for its shareholders in relation to the equity invested. Analyzing the factors influencing these changes could provide valuable insights into the company's financial health and performance.