Graham Holdings Co (GHC)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 205,288 | 67,079 | 352,075 | 300,365 | 327,855 |
| Total stockholders’ equity | US$ in thousands | 3,975,740 | 3,731,380 | 4,399,580 | 3,759,300 | 3,319,240 |
| ROE | 5.16% | 1.80% | 8.00% | 7.99% | 9.88% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $205,288K ÷ $3,975,740K
= 5.16%
The return on equity (ROE) of Graham Holdings Co. has fluctuated over the past five years. In 2023, the ROE stood at 5.13%, which represents an increase from the previous year's ROE of 1.79% in 2022. However, it is notably lower than the ROE figures reported in 2021 and 2019, which were 7.95% and 9.82%, respectively. The stability in the ROE at 7.95% in 2021 and 2020 suggests that the company was able to maintain its profitability levels during those years.
Overall, the downward trend in ROE from 2019 to 2023 may indicate challenges in effectively utilizing shareholders' equity to generate profits. It is essential for Graham Holdings Co. to explore factors contributing to the fluctuation in ROE and consider strategies to enhance profitability and efficiency in order to improve shareholder value in the future.
Peer comparison
Dec 31, 2023