Forward Air Corporation (FWRD)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-816,969	167,351	193,191	105,859	52,767
Total stockholders’ equity	US$ in thousands	201,728	764,261	707,244	593,654	547,329
ROE		-404.99%	21.90%	27.32%	17.83%	9.64%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-816,969K ÷ $201,728K
= -404.99%

Forward Air Corporation's return on equity (ROE) has shown significant fluctuations over the past five years. The ROE increased from 9.64% as of December 31, 2020, to 17.83% as of December 31, 2021, representing an improvement in the company's profitability and efficiency in generating returns for shareholders.

However, there was a substantial surge in ROE to 27.32% as of December 31, 2022, indicating a surge in profitability and shareholder value creation. The company's performance was favorable during this period.

In the subsequent year, the ROE decreased to 21.90% as of December 31, 2023. Although the ROE declined, it still remained above the levels observed in the earlier years, suggesting that the company was continuing to generate healthy returns for its shareholders.

Interestingly, the ROE took a dramatic downturn to -404.99% as of December 31, 2024. This negative ROE indicates that Forward Air Corporation incurred significant losses that exceed the equity invested by shareholders during that period. This unexpected outcome requires further investigation into the factors responsible for such a drastic decline in profitability.

Overall, while Forward Air Corporation experienced fluctuations in ROE over the past five years, it is essential for investors and stakeholders to carefully monitor the company's financial performance and management strategies to understand the reasons behind these fluctuations and assess the company's long-term sustainability and profitability.