Mister Car Wash, Inc. Common Stock (MCW)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 70,239 | 80,130 | 112,900 | -22,045 | 60,403 |
| Total stockholders’ equity | US$ in thousands | 998,352 | 915,035 | 801,128 | 657,152 | 16,650 |
| ROE | 7.04% | 8.76% | 14.09% | -3.35% | 362.78% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $70,239K ÷ $998,352K
= 7.04%
Based on the provided data, Mister Car Wash, Inc.'s Return on Equity (ROE) has shown significant fluctuations over the years.
As of December 31, 2020, the ROE was exceptionally high at 362.78%, indicating that the company generated a substantial return on shareholder equity that year. However, this performance was not sustained, as the ROE turned negative to -3.35% by December 31, 2021. This negative ROE suggests that the company was not efficient in utilizing shareholder equity to generate profits during that period.
By December 31, 2022, the ROE improved to 14.09%, indicating a positive return on equity, although not as high as in 2020. The trend continued with a slight decrease in the ROE to 8.76% by December 31, 2023, and a further decline to 7.04% by December 31, 2024.
The fluctuating ROE of Mister Car Wash, Inc. suggests varying levels of profitability and efficiency in utilizing shareholder equity over the years. Investors and analysts may want to delve deeper into the company's financial performance and operations to understand the reasons behind these fluctuations and assess the sustainability of its profitability in the future.
Peer comparison
Dec 31, 2024