LCI Industries (LCII)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	64,195	394,974	287,739	158,440	146,509
Total stockholders’ equity	US$ in thousands	1,355,040	1,381,010	1,092,880	908,326	800,672
ROE		4.74%	28.60%	26.33%	17.44%	18.30%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $64,195K ÷ $1,355,040K
= 4.74%

The return on equity (ROE) of LCI Industries has shown significant fluctuations over the past five years. It decreased from 18.30% in 2019 to 17.44% in 2020, only to exhibit a sharp increase to 26.33% in 2021, followed by a substantial jump to 28.60% in 2022. However, in 2023, the ROE experienced a notable decline to 4.74%.

This fluctuation in ROE indicates that the company's profitability relative to shareholders' equity has varied significantly over the years. A sudden drop in ROE, as witnessed in 2023, could be a cause for concern, suggesting that the company may be facing challenges in generating profits from shareholders' investments. Further analysis would be required to understand the factors driving these changes and assess the overall financial health and performance of LCI Industries.