Equifax Inc (EFX)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 604,100 | 545,300 | 696,200 | 744,200 | 520,100 |
| Total stockholders’ equity | US$ in thousands | 4,796,900 | 4,534,100 | 3,956,500 | 3,584,400 | 3,168,400 |
| ROE | 12.59% | 12.03% | 17.60% | 20.76% | 16.42% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $604,100K ÷ $4,796,900K
= 12.59%
Equifax Inc's return on equity (ROE) has shown variability over the years based on the provided data. In December 2020, the ROE stood at 16.42%, indicating that for every dollar of equity, the company generated a return of 16.42%. This figure increased to 20.76% by December 2021, reflecting improved profitability and efficiency in the utilization of shareholder equity.
However, there was a slight decline in ROE in the following years, with the metric dropping to 17.60% by December 2022. This might suggest a reduction in profitability or a less effective use of equity in generating profits. Subsequently, in December 2023, the ROE decreased further to 12.03%, signaling potential challenges in generating returns on shareholder investments.
By December 2024, there was a slight uptick in ROE to 12.59%, but it remained below the levels seen in earlier years. This trend indicates the importance of monitoring and analyzing factors driving ROE, such as profitability, financial leverage, and asset utilization, to assess the overall performance and sustainability of Equifax Inc in generating returns for its shareholders.