Graham Holdings Co (GHC)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 724,634 | 205,288 | 67,079 | 352,075 | 300,365 |
| Total stockholders’ equity | US$ in thousands | 4,256,660 | 3,975,740 | 3,731,380 | 4,399,580 | 3,759,300 |
| ROE | 17.02% | 5.16% | 1.80% | 8.00% | 7.99% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $724,634K ÷ $4,256,660K
= 17.02%
ROE is a key financial metric that measures a company's ability to generate profit from shareholders' equity. Looking at Graham Holdings Co's ROE over the past five years, we can see fluctuations in performance. In 2020, the ROE was 7.99%, which increased marginally to 8.00% in 2021. However, there was a significant drop in 2022, with the ROE falling to 1.80%. The performance improved in 2023 with an ROE of 5.16%, and there was a notable increase to 17.02% in 2024.
The varying ROE figures indicate changing levels of profitability and efficiency in the company's operations over the years. While the ROE increased in 2024, suggesting improved profitability relative to shareholders' equity, it is essential to investigate the factors behind this change in performance. Further analysis of Graham Holdings Co's financial statements and industry trends could provide insights into what drove the fluctuations in ROE and assess the company's overall financial health.
Peer comparison
Dec 31, 2024