ExlService Holdings Inc (EXLS)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	198,297	187,908	178,747	181,990	184,558	176,124	171,343	158,121	142,968	139,418	126,830	119,005	114,758	118,677	118,588	98,996	89,476	78,614	71,240	75,375
Total stockholders’ equity	US$ in thousands	929,862	907,563	852,606	803,255	889,437	856,087	834,214	795,222	758,179	704,584	685,653	700,341	693,156	684,985	728,014	726,225	719,172	709,928	680,928	655,904
ROE		21.33%	20.70%	20.96%	22.66%	20.75%	20.57%	20.54%	19.88%	18.86%	19.79%	18.50%	16.99%	16.56%	17.33%	16.29%	13.63%	12.44%	11.07%	10.46%	11.49%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $198,297K ÷ $929,862K
= 21.33%

ExlService Holdings Inc has shown a positive trend in its return on equity (ROE) over the past few years. The ROE increased steadily from 11.49% as of March 31, 2020, reaching a peak of 22.66% as of March 31, 2024. This indicates that the company has been effectively utilizing its equity to generate profits for shareholders.

The ROE fluctuated slightly quarter to quarter, but overall, the trend has been upward, demonstrating improved profitability and efficiency in utilizing shareholder equity. The upward trend suggests that the company's management has been successful in increasing profits relative to the shareholders' equity invested in the company.

Investors and analysts tend to view a high and increasing ROE positively, as it signifies a company's ability to generate strong returns on shareholder investment. However, it is essential to continue monitoring the ROE to ensure sustainable and consistent performance over the long term.