DXP Enterprises Inc (DXPE)
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 | 68,812 | 59,958 | 57,715 | 53,094 | 48,156 | 41,885 | 35,081 | 28,767 | 16,496 | 12,533 | -29,258 | -34,950 | -29,269 | -23,987 | 23,788 | 34,820 | 36,059 | 44,959 | 40,250 | 38,691 |
| Total stockholders’ equity | US$ in thousands | 380,879 | 363,576 | 369,465 | 374,284 | 365,392 | 386,497 | 375,586 | 360,187 | 346,674 | 361,132 | 353,712 | 361,826 | 360,338 | 322,641 | 356,823 | 351,136 | 353,786 | 341,157 | 329,017 | 315,279 |
| ROE | 18.07% | 16.49% | 15.62% | 14.19% | 13.18% | 10.84% | 9.34% | 7.99% | 4.76% | 3.47% | -8.27% | -9.66% | -8.12% | -7.43% | 6.67% | 9.92% | 10.19% | 13.18% | 12.23% | 12.27% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $68,812K ÷ $380,879K
= 18.07%
From the data provided, DXP Enterprises Inc's return on equity (ROE) has shown fluctuations over the years. The ROE has generally been positive, indicating that the company has been generating profits relative to its shareholders' equity.
The trend of ROE shows an improvement from 2019 to 2023, with ROE increasing from 10.19% in March 2019 to 18.07% in December 2023. This upward trend suggests that the company has been effectively utilizing its shareholders' equity to generate higher returns.
However, it is worth noting that there have been periods of negative ROE, such as in the second and third quarters of 2021. This indicates that during those periods, the company's net income was not sufficient to cover the shareholders' equity, resulting in a negative return.
Overall, the increasing trend in ROE is a positive sign for DXP Enterprises Inc, as it indicates the company's ability to generate higher returns for its shareholders. It is essential for the company to sustain this positive momentum and continue to improve its profitability to enhance shareholder value.
Peer comparison
Dec 31, 2023