Equifax Inc (EFX)
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 | 545,300 | 521,100 | 524,600 | 586,900 | 696,300 | 710,200 | 749,900 | 764,400 | 744,200 | 696,600 | 719,700 | 604,800 | 520,100 | 461,400 | 316,700 | 286,000 | -384,100 | -374,300 | -419,700 | -344,400 |
| Total stockholders’ equity | US$ in thousands | 4,534,100 | 4,293,300 | 4,191,200 | 4,064,000 | 3,956,500 | 3,759,000 | 3,805,000 | 3,834,100 | 3,584,400 | 3,539,200 | 3,460,500 | 3,318,000 | 3,168,400 | 2,929,000 | 2,694,100 | 2,386,500 | 2,578,600 | 2,515,800 | 2,543,400 | 2,561,700 |
| ROE | 12.03% | 12.14% | 12.52% | 14.44% | 17.60% | 18.89% | 19.71% | 19.94% | 20.76% | 19.68% | 20.80% | 18.23% | 16.42% | 15.75% | 11.76% | 11.98% | -14.90% | -14.88% | -16.50% | -13.44% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $545,300K ÷ $4,534,100K
= 12.03%
To analyze Equifax, Inc.'s Return on Equity (ROE) trend based on the provided data, we can observe the following:
1. General Trend: The ROE has been gradually decreasing from Q1 2022 to Q4 2023, indicating a potential decline in the company's profitability relative to its equity.
2. Q4 2023: The ROE for Q4 2023 stands at 12.03%, showing a slight decrease from the previous quarter.
3. Comparison with Previous Years: The ROE in Q4 2023 is significantly lower compared to the same quarter in 2022, where it was reported at 17.60%.
4. Peak ROE: The highest ROE observed during the period was in Q2 2022 at 19.94%, suggesting a period of strong profitability relative to equity at that time.
5. Variability: While the ROE fluctuates from quarter to quarter, it seems to have experienced a more significant decline in recent quarters, which could indicate challenges in generating profits with the existing level of equity.
Overall, the decreasing trend in Equifax, Inc.'s ROE over the analyzed period suggests a potential deterioration in the company's ability to generate profits relative to shareholders' equity, which may require further investigation to identify underlying causes and potential strategies for improvement.