Grid Dynamics Holdings Inc (GDYN)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	4,041	2,419	-1,187	2,257	-1,765	-11,369	-18,704	-34,517	-29,214	-26,118	-20,008	-8,305	-7,700	-8,814	-9,382	-10,065	-12,599	-5,772	-202	5,499
Total stockholders’ equity	US$ in thousands	517,829	400,247	388,449	382,811	382,907	372,924	366,562	359,885	363,044	350,838	232,925	231,252	227,051	275,566	143,012	140,247	151,728	150,005	145,977	144,430
ROE		0.78%	0.60%	-0.31%	0.59%	-0.46%	-3.05%	-5.10%	-9.59%	-8.05%	-7.44%	-8.59%	-3.59%	-3.39%	-3.20%	-6.56%	-7.18%	-8.30%	-3.85%	-0.14%	3.81%

December 31, 2024 calculation

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

Grid Dynamics Holdings Inc's return on equity (ROE) has shown fluctuating performance over the past few years. The ROE started the period at a low of 3.81% in March 2020 before dropping into negative territory in the following quarters. The company struggled with negative ROE figures throughout 2020 and 2021, reaching the lowest point of -9.59% in March 2023.

However, there was a slight improvement in the performance with the ROE turning positive in the later quarters of 2023 and continuing into 2024. The ROE increased to 0.78% by December 2024, indicating a recovery in the company's profitability and efficiency in generating returns for its shareholders.

Overall, Grid Dynamics Holdings Inc's ROE trajectory reflects a turbulent period marked by negative returns but with signs of improvement towards the end of the analyzed period. It is essential for the company to sustain this positive momentum to enhance shareholder value and demonstrate long-term financial stability.