Grid Dynamics Holdings Inc (GDYN)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	4,041	-1,765	-29,214	-7,700	-12,599
Total stockholders’ equity	US$ in thousands	517,829	382,907	363,044	227,051	151,728
ROE		0.78%	-0.46%	-8.05%	-3.39%	-8.30%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $4,041K ÷ $517,829K
= 0.78%

Grid Dynamics Holdings Inc's return on equity (ROE) has shown a fluctuating trend over the years based on the provided data. As of December 31, 2020, the ROE was at -8.30%, indicating that the company's net income did not generate significant returns for shareholders relative to the equity invested.

There was a slight improvement in ROE by the end of 2021, with a value of -3.39%, although the metric remained negative, suggesting ongoing challenges in generating returns for shareholders.

By December 31, 2022, the ROE decreased to -8.05%, indicating a decline in the company's ability to generate profit relative to shareholders' equity.

However, there was a notable improvement in the company's performance by the end of 2023, as the ROE turned positive at 0.46%, signaling a potential turnaround in profitability and efficiency in utilizing shareholder equity.

By December 31, 2024, the ROE improved further to 0.78%, indicating that the company was becoming more efficient in generating returns for its shareholders based on the equity invested.

Overall, the analysis of Grid Dynamics Holdings Inc's ROE highlights both challenges and improvements in the company's ability to generate profits relative to shareholders' equity over the years, with a recent positive trend showing signs of enhanced performance and potential shareholder value creation.