Mister Car Wash Inc (MCW)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 80,130 | 85,509 | 90,021 | 98,548 | 112,900 | 131,449 | 134,818 | -11,141 | |||
| Total stockholders’ equity | US$ in thousands | 915,035 | 892,717 | 865,366 | 828,741 | 801,128 | 775,572 | 747,406 | 701,354 | 657,152 | 608,188 | 574,017 |
| ROE | 8.76% | 9.58% | 10.40% | 11.89% | 14.09% | 16.95% | 18.04% | -1.59% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $80,130K ÷ $915,035K
= 8.76%
The return on equity (ROE) of Mister Car Wash Inc has exhibited a declining trend over the past five quarters. The ROE decreased from 14.09% in Q4 2022 to 8.76% in Q4 2023. This indicates that the company's ability to generate profit from shareholder equity has weakened. It is important to further investigate the factors contributing to this decline in ROE to understand the underlying issues and take necessary corrective actions. A decreasing ROE could signal inefficiencies in the company's operations, declining profitability, or increased leverage, among other potential factors. Monitoring and analyzing the trend in ROE over time will be crucial in assessing the company's financial performance and evaluating its overall shareholder value creation.
Peer comparison
Dec 31, 2023