Leidos Holdings Inc (LDOS)

Return on equity (ROE)

Dec 31, 2024 Sep 30, 2024 Mar 31, 2024 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
Net income (ttm) US$ in thousands 1,161,000 478,000 321,000 199,000 147,000 708,000 672,000 685,000 682,000 725,000 723,000 753,000 776,000 734,000 718,000 628,000 612,000 610,000 593,000 667,000
Total stockholders’ equity US$ in thousands 4,412,000 4,614,000 4,258,000 4,201,000 4,146,000 4,597,000 4,409,000 4,299,000 4,086,000 4,004,000 3,955,000 4,291,000 4,115,000 4,099,000 3,933,000 3,862,000 3,706,000 3,538,000 3,355,000 3,413,000
ROE 26.31% 10.36% 7.54% 4.74% 3.55% 15.40% 15.24% 15.93% 16.69% 18.11% 18.28% 17.55% 18.86% 17.91% 18.26% 16.26% 16.51% 17.24% 17.68% 19.54%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,161,000K ÷ $4,412,000K
= 26.31%

Leidos Holdings Inc's return on equity (ROE) has demonstrated varying trends over the past few years. The ROE was relatively stable between December 2019 and June 2021, ranging from 16.26% to 18.28%. This indicates that the company was efficiently generating profits from shareholders' equity during this period.

However, there was a slight decline in ROE in the following quarters, with values ranging from 16.69% to 15.24% by March 2023. This decrease in ROE may suggest a potential decrease in the company's profitability relative to its shareholders' equity.

The most significant change in ROE occurred in the quarters ending in September 2023 through December 2024. The ROE dropped significantly to a low of 3.55% in September 2023 before showing a gradual increase to 26.31% by December 2024. This rise in ROE indicates that the company's profitability relative to equity significantly improved during this period.

Overall, it is essential to monitor Leidos Holdings Inc's ROE closely to understand its evolving financial performance and efficiency in generating returns for its shareholders.