ManpowerGroup Inc (MAN)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	88,800	373,800	382,400	23,800	465,700
Total stockholders’ equity	US$ in thousands	2,223,300	2,447,300	2,521,700	2,441,000	2,743,000
ROE		3.99%	15.27%	15.16%	0.98%	16.98%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $88,800K ÷ $2,223,300K
= 3.99%

ManpowerGroup's return on equity (ROE) has exhibited fluctuating trends over the past five years. In 2023, the ROE stood at 3.99%, a substantial decrease from 15.27% in 2022 and 15.16% in 2021. This decline indicates a recent decline in profitability relative to shareholder's equity. It is worth noting that the ROE was notably low at 0.98% in 2020 but exhibited a significant improvement to 16.98% in 2019.

The downward trend from 2021 to 2023 suggests that ManpowerGroup may be experiencing challenges in generating profits relative to the levels of shareholder's equity during this period. Investors and stakeholders may want to further investigate the factors contributing to this downward trend in ROE to assess the company's financial performance and strategic direction. Ultimately, a declining ROE could signal potential inefficiencies in the utilization of equity to generate profits and create value for shareholders.