Fox Factory Holding Corp (FOXF)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 6,550 | 120,846 | 205,278 | 163,818 | 90,674 |
| Total stockholders’ equity | US$ in thousands | 1,201,180 | 1,221,760 | 1,121,390 | 894,082 | 719,171 |
| ROE | 0.55% | 9.89% | 18.31% | 18.32% | 12.61% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $6,550K ÷ $1,201,180K
= 0.55%
Fox Factory Holding Corp's return on equity (ROE) has shown varying trends over the past five years. In December 2020, the ROE stood at 12.61%, indicating that for every dollar of equity invested, the company generated a return of 12.61%. This figure increased to 18.32% by December 2021, showcasing improved profitability and efficiency in asset utilization.
The trend continued positively into December 2022 with an ROE of 18.31%, suggesting sustained profitability and effectiveness in utilizing shareholder equity to generate earnings. However, in December 2023, there was a noticeable decline in ROE to 9.89%, signaling a potential decrease in profitability relative to equity.
By December 2024, Fox Factory Holding Corp's ROE dropped significantly to 0.55%, reflecting a sharp decline in the company's ability to generate returns from shareholders' equity. This could be a concerning trend as it indicates a diminished efficiency in utilizing equity to generate profits.
Overall, while the company exhibited strong ROE figures in the past, the significant decline in 2024 raises questions about its ability to effectively utilize equity to drive profitability. It would be essential for stakeholders to further investigate the reasons behind this sharp decline and assess the company's strategies to improve ROE in the future.
Peer comparison
Dec 31, 2024