FTI Consulting Inc (FCN)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 274,892 | 235,514 | 234,966 | 210,682 | 216,726 |
| Total stockholders’ equity | US$ in thousands | 1,981,420 | 1,681,720 | 1,583,320 | 1,400,180 | 1,489,140 |
| ROE | 13.87% | 14.00% | 14.84% | 15.05% | 14.55% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $274,892K ÷ $1,981,420K
= 13.87%
FTI Consulting Inc.'s return on equity (ROE) has exhibited a generally stable trend over the last five years, with values ranging from 13.87% in 2023 to 15.05% in 2020. The ROE measures the company's efficiency in generating profits from shareholders' equity, indicating how well it utilizes its equity to generate returns.
Although the ROE fluctuated slightly from year to year, it remained within a relatively narrow range, signaling consistency in the company's ability to generate returns relative to its equity base. The slight decrease in ROE from 2020 to 2023 may indicate a moderation in profitability in recent years. However, a ROE above 10% generally suggests that the company is effectively utilizing its shareholders' equity to generate profits.
Overall, FTI Consulting Inc.'s ROE performance indicates a relatively solid financial performance, but investors may want to monitor any future trends to assess the company's ability to maintain or improve its profitability levels.
Peer comparison
Dec 31, 2023