Floor & Decor Holdings Inc (FND)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 205,872 | 245,980 | 298,195 | 283,230 | 194,981 |
| Total stockholders’ equity | US$ in thousands | 2,170,160 | 1,930,990 | 1,657,180 | 1,323,200 | 997,388 |
| ROE | 9.49% | 12.74% | 17.99% | 21.40% | 19.55% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $205,872K ÷ $2,170,160K
= 9.49%
Floor & Decor Holdings Inc's Return on Equity (ROE) has shown a declining trend over the years based on the provided data. In December 2020, the ROE was 19.55%, indicating that for every dollar of shareholders' equity, the company generated a profit of 19.55 cents.
By December 2024, the ROE has decreased to 9.49%, reflecting a significant drop compared to the initial figure. This downward trend suggests that the company's profitability in relation to shareholder equity has weakened over the years.
The decreasing ROE could be attributed to various factors such as a reduction in net income, an increase in equity due to additional capital raising, or inefficiencies in asset utilization. Investors and stakeholders may need to examine the company's financial performance and strategies closely to understand the reasons behind the declining ROE and assess the company's long-term sustainability and growth prospects.
Peer comparison
Dec 31, 2024