Mister Car Wash Inc (MCW)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Net income | US$ in thousands | 80,130 | 112,900 | -22,045 |
| Total stockholders’ equity | US$ in thousands | 915,035 | 801,128 | 657,152 |
| ROE | 8.76% | 14.09% | -3.35% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $80,130K ÷ $915,035K
= 8.76%
Mister Car Wash Inc's return on equity (ROE) has exhibited mixed performance over the three years analyzed. In 2021, the company reported a negative ROE of -3.35%, indicating that it generated a net loss or had poor profitability relative to its equity. However, there was a significant improvement in 2022, with the ROE increasing to 14.09%, suggesting a strong rebound in profitability and efficiency in capital utilization.
In 2023, the ROE decreased to 8.76%, signaling a drop in the company's profitability and efficiency in generating returns for its equity holders compared to the prior year. It is important for Mister Car Wash Inc to analyze the factors influencing these fluctuations in ROE to identify areas for improvement and sustainability in its financial performance. Further investigation into the company's financial health, operational efficiency, and strategic decision-making processes may provide insights into enhancing ROE in the future.
Peer comparison
Dec 31, 2023