Leidos Holdings Inc (LDOS)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 199,000 | 685,000 | 753,000 | 628,000 | 667,000 |
| Total stockholders’ equity | US$ in thousands | 4,201,000 | 4,299,000 | 4,291,000 | 3,862,000 | 3,413,000 |
| ROE | 4.74% | 15.93% | 17.55% | 16.26% | 19.54% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $199,000K ÷ $4,201,000K
= 4.74%
The return on equity (ROE) of Leidos Holdings Inc has shown a declining trend over the past five years. In 2021, the ROE was 17.55%, which gradually decreased to 4.74% in 2023. This suggests that the company's ability to generate profit from its shareholders' equity has weakened over time.
The declining ROE could be attributed to various factors such as decreasing profitability, efficiency issues, or changes in the capital structure. Investors and stakeholders may be concerned about the company's declining ROE as it indicates a decrease in the profitability of the shareholders' equity investment in the company.
It is important for Leidos Holdings Inc to closely monitor and address the factors contributing to the decline in ROE to improve its financial performance and maintain shareholder confidence. Additionally, the company may need to review its strategies, operational efficiency, and capital management to enhance returns for its shareholders.
Peer comparison
Dec 31, 2023