Leidos Holdings Inc (LDOS)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,254,000 | 199,000 | 685,000 | 753,000 | 628,000 |
| Total stockholders’ equity | US$ in thousands | 4,412,000 | 4,201,000 | 4,299,000 | 4,291,000 | 3,862,000 |
| ROE | 28.42% | 4.74% | 15.93% | 17.55% | 16.26% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,254,000K ÷ $4,412,000K
= 28.42%
Based on the data provided, Leidos Holdings Inc's return on equity (ROE) has shown variability over the years. In 2020, the ROE stood at 16.26%, which increased slightly to 17.55% by the end of 2021. However, there was a decline in ROE to 15.93% by December 31, 2022.
The most significant change occurred in 2023, when the ROE dropped to 4.74%, indicating a substantial decrease in the company's profitability relative to its equity. This significant decline may warrant further investigation into the factors impacting the company's performance during that period.
By the end of 2024, Leidos Holdings Inc managed to significantly improve its ROE to 28.42%, showcasing a strong performance and higher profitability relative to its equity.
Overall, the trend in Leidos Holdings Inc's ROE indicates fluctuations in profitability levels over the years, with some years showing improvements, while others experiencing declines. This variability underscores the importance of closely monitoring the company's financial performance and identifying the factors driving these fluctuations to ensure sustainable and profitable growth in the future.
Peer comparison
Dec 31, 2024