EPAM Systems Inc (EPAM)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	454,533	417,083	419,416	481,652	327,160
Total stockholders’ equity	US$ in thousands	3,629,210	3,470,890	3,001,530	2,487,120	1,983,020
ROE		12.52%	12.02%	13.97%	19.37%	16.50%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $454,533K ÷ $3,629,210K
= 12.52%

Based on the provided data, EPAM Systems Inc's return on equity (ROE) has shown fluctuations over the past five years. The ROE for the company was 16.50% as of December 31, 2020, indicating that for every dollar of shareholder equity invested, the company generated a return of 16.50%.

Subsequently, there was an improvement in the ROE to 19.37% as of December 31, 2021, reflecting increased efficiency in utilizing shareholder equity to generate profits. However, there was a decline in the ROE to 13.97% by December 31, 2022, which could indicate challenges in maintaining profitability or managing assets efficiently.

Furthermore, the ROE decreased further to 12.02% as of December 31, 2023, suggesting a potential decrease in profitability compared to the previous year. However, there was a slight improvement to 12.52% by December 31, 2024, although the ROE remained lower than the levels seen in the earlier years.

In summary, the fluctuations in EPAM Systems Inc's ROE over the past five years indicate varying levels of profitability and efficiency in utilizing shareholder equity. Further analysis would be required to understand the underlying reasons for these changes and assess the company's overall financial stability and performance.