Fox Factory Holding Corp (FOXF)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 120,846 | 205,278 | 163,818 | 90,674 | 93,033 |
| Total stockholders’ equity | US$ in thousands | 1,221,760 | 1,121,390 | 894,082 | 719,171 | 422,200 |
| ROE | 9.89% | 18.31% | 18.32% | 12.61% | 22.04% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $120,846K ÷ $1,221,760K
= 9.89%
Fox Factory Holding Corp's return on equity (ROE) has shown fluctuating trends over the past five years. In 2019, the ROE was at its highest level of 22.04%, indicating strong profitability relative to shareholder equity. However, there was a slight decrease in 2020 to 12.61%, which may suggest a decline in profitability or a change in the capital structure.
Subsequently, in 2021 and 2022, the ROE increased to 18.32% and 18.31% respectively, reflecting a recovery and improvement in profitability. This could be attributed to effective management of assets and efficient utilization of equity to generate earnings.
However, in 2023, the ROE decreased to 9.89%, signaling a potential concern as it dropped significantly compared to the previous year. This decline may raise questions about the company's ability to generate profits from shareholders' equity.
Overall, Fox Factory Holding Corp's ROE performance has been mixed over the years, with fluctuations indicating varying levels of profitability and efficiency in utilizing shareholders' equity for generating returns. Further analysis of the company's financial performance and strategies may be needed to determine the factors influencing these fluctuations in ROE.
Peer comparison
Dec 31, 2023