Exponent Inc (EXPO)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 100,339 | 102,330 | 101,202 | 82,552 | 82,460 |
| Total stockholders’ equity | US$ in thousands | 356,085 | 320,752 | 417,065 | 361,498 | 350,251 |
| ROE | 28.18% | 31.90% | 24.27% | 22.84% | 23.54% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $100,339K ÷ $356,085K
= 28.18%
Exponent Inc's return on equity (ROE) has shown a general positive trend over the past five years, with fluctuations within a relatively narrow range. The ROE increased from 23.54% in 2019 to a peak of 31.90% in 2022 before experiencing a slight decline in 2023 to 28.18%.
The ROE levels exceeding 20% indicate that Exponent Inc has been efficiently utilizing shareholders' equity to generate profits during these years. The higher ROE in 2022 compared to other years suggests the company was more effective in generating profits with the shareholders' investment in that particular year. However, the subsequent decrease in ROE in 2023 could raise some concerns about the company's ability to maintain or improve its profitability efficiency in the near term.
Overall, Exponent Inc's ROE performance indicates that the company has been successful in generating profits relative to its shareholders' equity over the years, but investors may want to monitor future ROE trends to ensure sustained profitability and efficient use of equity.
Peer comparison
Dec 31, 2023