DXP Enterprises Inc (DXPE)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 68,812 | 48,155 | 16,496 | -29,269 | 37,025 |
| Total stockholders’ equity | US$ in thousands | 380,879 | 365,392 | 346,674 | 360,338 | 353,786 |
| ROE | 18.07% | 13.18% | 4.76% | -8.12% | 10.47% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $68,812K ÷ $380,879K
= 18.07%
DXP Enterprises Inc's Return on Equity (ROE) has shown a positive trend over the last five years, indicating an improvement in the company's ability to generate profits from the shareholders' equity.
From 2019 to 2020, there was a significant improvement in ROE from 10.47% to -8.12%, which suggests a decrease in profitability in 2020 or possibly a decline in equity base. However, the company managed to turn this around in the following years.
In 2021, the ROE further improved to 4.76%, indicating a recovery in profitability. This positive trend continued in 2022 with a ROE of 13.18%, signifying a substantial increase in profitability from the previous year.
Finally, in 2023, DXP Enterprises Inc achieved an ROE of 18.07%, demonstrating a strong performance in generating returns for shareholders based on their ownership stake. This improvement reflects positively on the company's management of assets and liabilities to enhance shareholder value.
Overall, the upward trajectory in ROE indicates improved efficiency and profitability for DXP Enterprises Inc over the years, reflecting positively on its financial performance and potential for future growth.
Peer comparison
Dec 31, 2023