Equifax Inc (EFX)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 545,300 | 696,200 | 744,200 | 520,100 | -384,100 |
| Total stockholders’ equity | US$ in thousands | 4,534,100 | 3,956,500 | 3,584,400 | 3,168,400 | 2,578,600 |
| ROE | 12.03% | 17.60% | 20.76% | 16.42% | -14.90% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $545,300K ÷ $4,534,100K
= 12.03%
Equifax, Inc.'s return on equity (ROE) has displayed fluctuations over the past five years. In 2023, the ROE stands at 12.03%, which represents a decrease from the previous year's ROE of 17.60%. This decline may indicate a decrease in profitability relative to the company's equity base. Comparing further back, we see that in 2021, Equifax achieved a higher ROE of 20.76%, which suggests stronger profitability compared to the more recent years.
The significant shift in ROE from negative in 2019 to positive values in the subsequent years is notable. It is essential to investigate the factors contributing to this turnaround in profitability. Overall, the varying ROE figures suggest fluctuations in the company's ability to generate profits from its shareholders' equity. Further analysis of the financial statements and performance drivers is necessary to better understand the factors influencing Equifax's ROE dynamics.