Genpact Limited (G)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 631,255 | 353,404 | 369,448 | 308,276 | 304,881 |
| Total stockholders’ equity | US$ in thousands | 2,248,390 | 1,826,160 | 1,897,130 | 1,834,230 | 1,689,170 |
| ROE | 28.08% | 19.35% | 19.47% | 16.81% | 18.05% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $631,255K ÷ $2,248,390K
= 28.08%
ROE is a key financial ratio that measures a company's profitability by evaluating how effectively it generates profits from shareholders' equity. Genpact Ltd has shown a fluctuating trend in its ROE over the past five years. From 2019 to 2020, there was a slight increase in ROE from 18.05% to 16.81%. However, from 2020 to 2021, there was a notable improvement in ROE to 19.47%. The trend continued in 2022, with a ROE of 19.35%. The most significant improvement was observed in 2023, where Genpact achieved an ROE of 28.08%, indicating a substantial increase in profitability and efficient utilization of equity.
This improvement in ROE over the years suggests that Genpact has been able to generate higher profits relative to shareholders' equity, reflecting positively on the company's financial performance and operational efficiency. The increasing trend in ROE indicates improved financial health and potential for sustainable growth. Investors and stakeholders may view this positively as it signifies that Genpact is effectively leveraging its equity to generate higher returns.
Peer comparison
Dec 31, 2023