Graham Holdings Co (GHC)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	205,288	158,189	214,000	23,727	67,079	145,600	152,406	335,249	352,075	504,535	542,564	446,060	300,365	209,105	174,635	212,862	327,855	238,659	320,578	310,063
Total stockholders’ equity	US$ in thousands	3,975,740	3,688,500	3,809,480	3,747,220	3,731,380	4,259,710	4,308,690	4,460,160	4,399,580	3,963,840	3,968,090	3,857,620	3,759,300	3,239,810	3,206,670	3,206,060	3,319,240	3,052,010	3,032,810	2,993,600
ROE		5.16%	4.29%	5.62%	0.63%	1.80%	3.42%	3.54%	7.52%	8.00%	12.73%	13.67%	11.56%	7.99%	6.45%	5.45%	6.64%	9.88%	7.82%	10.57%	10.36%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $205,288K ÷ $3,975,740K
= 5.16%

The return on equity (ROE) for Graham Holdings Co. has fluctuated over the past eight quarters. The ROE ranged from a low of 0.62% in Q1 2023 to a high of 7.47% in Q1 2022. The company experienced a slight improvement in Q4 2023 with an ROE of 5.13%. It is noteworthy that the ROE has generally been below double digits, indicating potential inefficiencies in generating profits relative to shareholder equity. Further analysis is necessary to understand the factors contributing to the fluctuations in ROE and to evaluate the company's profitability and efficiency in utilizing shareholder funds.