Graham Holdings Co (GHC)
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 | 724,583 | 229,051 | 133,517 | 277,396 | 205,288 | 158,189 | 213,807 | 23,488 | 66,224 | 144,291 | 151,023 | 333,146 | 349,836 | 502,750 | 540,606 | 444,763 | 299,820 | 208,560 | 174,289 | 212,296 |
| Total stockholders’ equity | US$ in thousands | 4,256,660 | 4,004,300 | 3,968,090 | 4,043,490 | 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 |
| ROE | 17.02% | 5.72% | 3.36% | 6.86% | 5.16% | 4.29% | 5.61% | 0.63% | 1.77% | 3.39% | 3.51% | 7.47% | 7.95% | 12.68% | 13.62% | 11.53% | 7.98% | 6.44% | 5.44% | 6.62% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $724,583K ÷ $4,256,660K
= 17.02%
Graham Holdings Co's return on equity (ROE) has fluctuated over the past few years, presenting a mixed performance. The ROE stood at 6.62% as of March 31, 2020, showing a moderate level of profitability. However, there was a slight decline to 5.44% by June 30, 2020, indicating a decrease in the company's ability to generate profits from shareholders' equity.
Subsequently, there was an improvement in ROE to 7.98% by December 31, 2020, suggesting a better utilization of equity to generate profits. The trend continued positively with ROE reaching 13.62% by June 30, 2021, signifying a significant increase in profitability and efficiency.
However, the ROE started to decline thereafter, dropping to 3.39% by September 30, 2022, and further decreasing to 1.77% by December 31, 2022. This downward trend continued into the first half of 2023, with an ROE of 0.63% as of March 31, 2023, indicating a deteriorating profitability performance.
There was a partial recovery in the following quarters, with the ROE recovering to 5.16% by December 31, 2023, and further improving to 17.02% by December 31, 2024, representing a significant rebound in profitability.
Overall, Graham Holdings Co's ROE has shown fluctuations, with periods of both improvement and decline. It is essential for the company to assess and address the factors driving these fluctuations to ensure sustained profitability and efficient utilization of shareholders' equity.
Peer comparison
Dec 31, 2024