Dril-Quip Inc (DRQ)
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 | 604 | 422 | 20,745 | 11,692 | 443 | -64,647 | -89,079 | -102,576 | -127,996 | -75,822 | -50,353 | -45,428 | -30,768 | -12,114 | -27,750 | -11,927 | 1,720 | -80,592 | -89,640 | -94,363 |
| Total stockholders’ equity | US$ in thousands | 881,260 | 870,462 | 879,409 | 877,814 | 872,352 | 862,916 | 868,689 | 887,278 | 897,108 | 979,777 | 995,324 | 1,008,270 | 1,041,530 | 1,037,560 | 1,015,390 | 1,024,200 | 1,090,700 | 1,092,670 | 1,097,130 | 1,095,400 |
| ROE | 0.07% | 0.05% | 2.36% | 1.33% | 0.05% | -7.49% | -10.25% | -11.56% | -14.27% | -7.74% | -5.06% | -4.51% | -2.95% | -1.17% | -2.73% | -1.16% | 0.16% | -7.38% | -8.17% | -8.61% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $604K ÷ $881,260K
= 0.07%
The return on equity (ROE) is a key profitability metric that indicates how effectively a company is generating profits from shareholder equity.
Dril-Quip, Inc.'s ROE has varied over the past eight quarters. In Q4 2023, the ROE was 0.07%, a slight positive return indicating that the company was able to generate a small profit relative to its shareholder equity. However, this was a significant improvement from the previous quarter's negative ROE of -0.17%.
Looking back further, in Q2 2023, Dril-Quip's ROE increased to 2.36%, indicating a higher level of profitability compared to the previous quarters. Q1 2023 also showed a positive trend with an ROE of 1.33%.
In contrast, the company faced challenges in the previous year, as seen in Q4 2022, Q3 2022, Q2 2022, and Q1 2022, where the ROE was negative, with the lowest being -11.55% in Q1 2022.
Overall, Dril-Quip has shown some improvement in its ROE in recent quarters, signaling better profitability and efficiency in generating returns for its shareholders. However, the company still needs to focus on sustaining and building upon these positive trends to ensure long-term profitability and value creation for its investors.
Peer comparison
Dec 31, 2023