Grand Canyon Education Inc (LOPE)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	204,985	184,675	260,344	257,196	259,175
Total stockholders’ equity	US$ in thousands	718,014	637,619	1,045,050	1,574,330	1,443,430
ROE		28.55%	28.96%	24.91%	16.34%	17.96%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $204,985K ÷ $718,014K
= 28.55%

Grand Canyon Education Inc's return on equity (ROE) has shown a positive trend over the past five years, with values of 17.96% in 2019, 16.34% in 2020, 24.91% in 2021, 28.96% in 2022, and 28.55% in 2023. This indicates that the company has been effectively utilizing its equity to generate profits for its shareholders. The consistent improvement in ROE reflects the company's ability to generate higher profits relative to its shareholder equity.

The increasing trend in ROE suggests that Grand Canyon Education Inc has been efficiently managing its assets and liabilities to maximize returns. The higher ROE values in the recent years demonstrate an improvement in the company's profitability and efficiency in generating returns on the equity invested by shareholders.

Overall, the improving ROE of Grand Canyon Education Inc over the period indicates a positive performance in terms of utilizing equity capital effectively to generate profits, which may be a result of strategic management decisions and operational efficiency within the company.