Everus Construction Group Inc (ECG)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Net income | US$ in thousands | 118,783 | 124,781 | 109,402 |
| Total stockholders’ equity | US$ in thousands | 448,850 | 382,247 | — |
| ROE | 26.46% | 32.64% | — |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $118,783K ÷ $448,850K
= 26.46%
Based on the provided data for Everus Construction Group Inc, the return on equity (ROE) has shown a downward trend over the past two years. In 2022, the ROE was recorded at 32.64%, indicating a strong profitability measure for the company. However, in 2023, the ROE decreased to 26.46%, suggesting a decline in the company's ability to generate profit from its shareholders' equity.
The absence of ROE data for 2021 limits a direct comparison for the year, but the decreasing trend from 2022 to 2023 raises concerns about the company's operational efficiency and overall performance in utilizing shareholder equity to generate profits. It is important for Everus Construction Group Inc to analyze the factors contributing to this decline and implement strategies to improve its ROE in order to enhance shareholder value and ensure sustainable growth in the future.
Peer comparison
Dec 31, 2023