Green Brick Partners Inc (GRBK)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	284,626	291,900	190,210	113,693	58,656
Total stockholders’ equity	US$ in thousands	1,300,700	1,061,910	874,548	640,242	523,168
ROE		21.88%	27.49%	21.75%	17.76%	11.21%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $284,626K ÷ $1,300,700K
= 21.88%

Green Brick Partners Inc's return on equity (ROE) has shown a consistent upward trend over the past five years, indicating improving efficiency in generating profits from shareholders' equity. The ROE has increased from 11.21% in 2019 to 21.66% in 2023. This suggests that the company has been effectively utilizing its equity to generate earnings for shareholders.

The ROE of 21.66% in 2023 is above the previous years, reflecting a strong performance in that year. The company's ability to deliver an ROE above 20% indicates that it is efficiently using its equity to drive profitability.

Overall, Green Brick Partners Inc's ROE has shown positive growth trends over the years, indicating improved profitability and effective management of shareholder investments. It appears that the company has been successful in maintaining and enhancing its profitability levels, which is a positive signal for investors and stakeholders.