Grocery Outlet Holding Corp (GO)
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 | 39,465 | 51,260 | 54,222 | 64,692 | 79,437 | 81,220 | 71,575 | 67,198 | 65,052 | 55,802 | 55,446 | 54,992 | 62,310 | 79,935 | 103,270 | 112,963 | 106,713 | 92,281 | 64,252 | 24,287 |
| Total stockholders’ equity | US$ in thousands | 1,197,380 | 1,226,050 | 1,220,840 | 1,224,570 | 1,219,340 | 1,203,090 | 1,164,810 | 1,127,540 | 1,110,210 | 1,085,310 | 1,056,690 | 1,024,070 | 1,009,270 | 994,031 | 973,883 | 948,086 | 922,307 | 888,826 | 833,401 | 784,628 |
| ROE | 3.30% | 4.18% | 4.44% | 5.28% | 6.51% | 6.75% | 6.14% | 5.96% | 5.86% | 5.14% | 5.25% | 5.37% | 6.17% | 8.04% | 10.60% | 11.91% | 11.57% | 10.38% | 7.71% | 3.10% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $39,465K ÷ $1,197,380K
= 3.30%
Over the analyzed period from March 31, 2020, to December 31, 2024, Grocery Outlet Holding Corp's return on equity (ROE) fluctuated. The ROE started at 3.10% in March 2020 and increased gradually, reaching its peak at 11.91% in March 2021. Subsequently, the ROE declined but remained relatively stable around the 5-7% range until December 2023. However, in the last quarter of 2024, the ROE dropped significantly to 3.30%.
The downward trend in ROE from 11.91% in March 2021 to 3.30% in December 2024 suggests that the company's ability to generate profits from shareholder equity diminished over time. This decline may indicate challenges in efficiently utilizing shareholder funds to generate earnings or increased equity base without a proportional increase in net income. Consequently, investors and analysts may further scrutinize the company's operational efficiency, profitability, and capital structure to understand the factors influencing the declining ROE.
Peer comparison
Dec 31, 2024