Floor & Decor Holdings Inc (FND)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 245,980 | 278,136 | 288,388 | 298,768 | 298,195 | 278,831 | 277,301 | 278,385 | 283,230 | 290,497 | 284,626 | 233,714 | 194,981 | 173,182 | 145,382 | 156,974 | 150,631 | 133,192 | 118,786 | 115,036 |
| Total stockholders’ equity | US$ in thousands | 1,930,990 | 1,885,480 | 1,809,780 | 1,728,420 | 1,657,180 | 1,582,620 | 1,494,290 | 1,402,420 | 1,323,200 | 1,264,910 | 1,179,600 | 1,080,720 | 997,388 | 931,505 | 850,496 | 809,289 | 764,336 | 723,040 | 670,888 | 619,961 |
| ROE | 12.74% | 14.75% | 15.93% | 17.29% | 17.99% | 17.62% | 18.56% | 19.85% | 21.40% | 22.97% | 24.13% | 21.63% | 19.55% | 18.59% | 17.09% | 19.40% | 19.71% | 18.42% | 17.71% | 18.56% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $245,980K ÷ $1,930,990K
= 12.74%
Floor & Decor Holdings Inc's return on equity (ROE) has shown a varying trend over the period observed. The ROE has generally decreased from a peak of 24.13% in Jun 2021 to 12.74% in Dec 2023. This indicates a decline in the company's ability to generate profits from its shareholders' equity. The ROE hovered around the range of 17%-19% between Mar 2020 and Dec 2022 before experiencing a more significant drop in recent periods.
A decreasing ROE could potentially signify inefficiencies in the utilization of equity to generate profits. It may also indicate declining profitability or increasing amounts of equity, leading to a lower return. Investors and stakeholders may be concerned about the downward trend in ROE as it reflects a diminishing capability to generate returns on the invested equity.
Further analysis is warranted to understand the factors contributing to the fluctuating ROE and to assess whether the company's financial health and operational efficiency are sustainable in the long term. Additional financial metrics and contextual information would be essential to provide a comprehensive evaluation of Floor & Decor Holdings Inc's performance and prospects.
Peer comparison
Dec 31, 2023