Heidrick & Struggles International (HSII)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 8,728 | 54,410 | 79,486 | 72,572 | -37,707 |
| Total stockholders’ equity | US$ in thousands | 452,817 | 462,278 | 410,646 | 336,020 | 267,602 |
| ROE | 1.93% | 11.77% | 19.36% | 21.60% | -14.09% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $8,728K ÷ $452,817K
= 1.93%
Heidrick & Struggles International's return on equity (ROE) has exhibited significant fluctuations over the past five years. As of December 31, 2020, the company reported a negative ROE of -14.09%, indicating that the shareholders experienced a loss on their investment during that period. However, there was a notable turnaround in the following year, with the ROE increasing substantially to 21.60%, reflecting a strong profitability and efficiency in generating returns for the shareholders.
Subsequently, in 2022 and 2023, Heidrick & Struggles International sustained relatively high ROE figures of 19.36% and 11.77%, respectively. These results suggest that the company continued to generate healthy returns on the shareholders' equity, albeit at a slightly decreased rate compared to the previous year.
By December 31, 2024, the ROE dropped significantly to 1.93%, indicating a considerable decline in profitability and efficiency in utilizing the shareholders' equity to generate returns. This decline might be a cause for concern and warrants further investigation into the company's financial performance and strategic direction.
Overall, Heidrick & Struggles International's ROE performance has been volatile, with periods of strong profitability and efficiency interspersed with periods of decline. Analyzing the underlying drivers of these fluctuations could provide valuable insights into the company's financial health and future prospects.
Peer comparison
Dec 31, 2024