LCI Industries (LCII)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	64,195	49,443	84,948	206,052	394,974	494,432	496,441	409,800	287,739	254,103	259,049	204,346	158,440	138,554	106,016	140,357	146,509	137,881	135,884	135,581
Total stockholders’ equity	US$ in thousands	1,355,040	1,372,140	1,370,900	1,359,510	1,381,010	1,423,560	1,394,360	1,259,250	1,092,880	1,031,140	986,176	959,587	908,326	875,562	816,630	807,803	800,672	777,381	752,876	721,679
ROE		4.74%	3.60%	6.20%	15.16%	28.60%	34.73%	35.60%	32.54%	26.33%	24.64%	26.27%	21.30%	17.44%	15.82%	12.98%	17.38%	18.30%	17.74%	18.05%	18.79%

December 31, 2023 calculation

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

The return on equity (ROE) for LCI Industries has shown a declining trend over the quarters, from 32.54% in Q1 2022 to 4.74% in Q4 2023. This indicates a decrease in the company's profitability relative to its equity base. The sharp drop in ROE from Q1 2023 (15.16%) to Q2 2023 (6.20%) suggests a significant decline in the company's ability to generate earnings from its shareholders' investments.

The declining ROE could be attributed to various factors such as lower net income, increased equity base, or inefficient utilization of assets. It is essential for the company to investigate the reasons behind this downward trend in ROE and take necessary measures to improve profitability and efficiency in utilizing shareholder equity to generate returns. Investors and stakeholders may monitor these trends closely to assess the company's financial performance and management effectiveness.