Grocery Outlet Holding Corp (GO)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 39,465 | 79,437 | 65,052 | 62,310 | 106,713 |
| Total stockholders’ equity | US$ in thousands | 1,197,380 | 1,219,340 | 1,110,210 | 1,009,270 | 922,307 |
| ROE | 3.30% | 6.51% | 5.86% | 6.17% | 11.57% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $39,465K ÷ $1,197,380K
= 3.30%
The return on equity (ROE) of Grocery Outlet Holding Corp has shown a declining trend over the past five years.
In December 2020, the ROE stood at 11.57%, indicating that for every dollar of shareholders' equity invested, the company generated a return of 11.57%. However, by December 2024, the ROE had decreased to 3.30%, suggesting a significant decline in the company's profitability relative to its equity.
The downward trend in ROE could be a cause for concern as it indicates a decrease in the company's ability to generate profits from its shareholders' equity. This could be attributed to various factors such as an increase in expenses, a slowdown in revenue growth, or inefficient use of assets.
As an analyst, it would be important to further investigate the reasons behind the decreasing ROE and assess the company's strategies to improve profitability and efficiency in order to enhance shareholder value.
Peer comparison
Dec 31, 2024