Graco Inc (GGG)

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 486,083 487,328 498,254 499,544 506,511 522,749 505,858 488,968 460,645 454,685 442,282 435,022 439,866 434,325 444,611 363,325 330,456 300,600 270,617 329,922
Total stockholders’ equity US$ in thousands 2,584,140 2,513,290 2,418,480 2,335,650 2,224,220 2,188,530 2,116,310 1,986,340 1,859,650 1,788,310 1,757,270 1,690,260 1,709,340 1,564,350 1,481,260 1,382,500 1,283,900 1,165,940 1,026,970 1,018,660
ROE 18.81% 19.39% 20.60% 21.39% 22.77% 23.89% 23.90% 24.62% 24.77% 25.43% 25.17% 25.74% 25.73% 27.76% 30.02% 26.28% 25.74% 25.78% 26.35% 32.39%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $486,083K ÷ $2,584,140K
= 18.81%

Graco Inc's return on equity (ROE) has shown a gradual downward trend over the evaluated periods, starting at 32.39% as of March 31, 2020, and declining to 18.81% by December 31, 2024. This indicates a reduction in the company's ability to generate profits from shareholders' equity over time.

While the ROE remained relatively stable around the mid-20% range from 2020 to early 2023, there was a more significant decline in ROE from mid-2023 to the end of 2024. This could be a concerning sign for investors, as a decreasing ROE suggests that the company's efficiency in utilizing shareholder funds to generate profits is diminishing.

It is critical for Graco Inc to closely analyze the factors contributing to this decline in ROE and take necessary steps to improve efficiency, profitability, and overall performance to reverse this negative trend and enhance shareholder value in the long run.