Geo Group Inc (GEO)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 70 | 107,325 | 171,813 | 77,418 | 113,032 |
| Total stockholders’ equity | US$ in thousands | 1,334,940 | 1,291,770 | 1,165,090 | 975,016 | 912,082 |
| ROE | 0.01% | 8.31% | 14.75% | 7.94% | 12.39% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $70K ÷ $1,334,940K
= 0.01%
Geo Group Inc's return on equity (ROE) has shown fluctuations over the past five years. In 2020, the ROE was at 12.39%, indicating that for each dollar of shareholders' equity, the company generated a return of 12.39%. However, by the end of 2021, the ROE decreased to 7.94%, suggesting a decline in profitability and efficiency in utilizing shareholder funds.
The following year, in 2022, the ROE surged to 14.75%, demonstrating an improvement in the company's ability to generate profits from shareholders' equity. Subsequently, in 2023, the ROE dropped to 8.31%, signaling a slight decrease in profitability compared to the previous year.
Notably, by the end of 2024, the ROE dramatically decreased to a mere 0.01%, indicating a significant decline in the company's ability to generate profits relative to its equity base. This sharp decrease raises concerns about the company's efficiency in utilizing shareholders' funds effectively to generate returns.
Overall, a declining trend in ROE, especially the substantial drop observed in 2024, suggests potential challenges that Geo Group Inc may be facing in terms of profitability and operational efficiency. Further analysis of the company's financial performance and strategic initiatives may be necessary to address these issues and improve ROE in the future.
Peer comparison
Dec 31, 2024