Graco Inc (GGG)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 506,511 | 460,645 | 439,866 | 330,456 | 343,853 |
| Total stockholders’ equity | US$ in thousands | 2,224,220 | 1,859,650 | 1,709,340 | 1,283,900 | 1,024,930 |
| ROE | 22.77% | 24.77% | 25.73% | 25.74% | 33.55% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $506,511K ÷ $2,224,220K
= 22.77%
Graco Inc's return on equity (ROE) has shown a declining trend over the past five years, decreasing from 33.55% in 2019 to 22.77% in 2023. This indicates a decreasing ability of the company to generate profits from its equity investments. The ROE peaked in 2021 at 25.73% before starting to decline. It is worth noting that even though the ROE has decreased, it still remains at a relatively healthy level, suggesting that Graco Inc is effectively utilizing shareholders' equity to generate returns. Further analysis would be needed to understand the factors contributing to the decline in ROE and whether it is a cause for concern or a natural fluctuation in performance.
Peer comparison
Dec 31, 2023