Forward Air Corporation (FWRD)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	167,351	193,191	105,859	23,733	87,099
Total stockholders’ equity	US$ in thousands	764,261	707,244	593,654	547,329	577,182
ROE		21.90%	27.32%	17.83%	4.34%	15.09%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $167,351K ÷ $764,261K
= 21.90%

Forward Air Corporation's return on equity (ROE) has exhibited some fluctuations over the past five years, as shown in the table. The ROE was highest in 2022 at 27.32% and lowest in 2020 at 4.34%. The company's ROE for the most recent year, 2023, stands at 21.90%.

The significant increase in ROE from 2020 to 2021 indicates an improvement in the company's ability to generate profit from shareholders' equity. However, the sharp decrease in 2022 compared to the previous year suggests a potential decrease in profitability or more equity being utilized in the business.

Overall, Forward Air Corporation's ROE has demonstrated variability over the years, with 2022 being a standout year for return on equity performance. Investors and stakeholders may want to further explore the factors driving these fluctuations in ROE to gain a deeper understanding of the company's financial health and performance.