Callaway Golf Company (MODG)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 95,000 | 157,900 | 322,000 | -126,900 | 79,408 |
| Total stockholders’ equity | US$ in thousands | 3,878,200 | 3,774,300 | 3,682,900 | 675,644 | 767,353 |
| ROE | 2.45% | 4.18% | 8.74% | -18.78% | 10.35% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $95,000K ÷ $3,878,200K
= 2.45%
Topgolf Callaway Brands Corp's return on equity (ROE) has exhibited fluctuations over the past five years. In 2023, the ROE was at 2.45%, which represents a decrease from the previous year's ROE of 4.18% in 2022. The downward trend in ROE has been observed since the significant increase in 2021, where the ROE reached 8.74%. Prior to that, the company experienced a negative ROE of -18.79% in 2020, indicating the company was not generating profits sufficient to cover shareholders' equity.
The positive ROE in 2019, at 10.35%, reflects a strong performance where the company was able to generate a return that exceeded the shareholders' equity. The subsequent fluctuations suggest inconsistent profitability and efficiency in utilizing equity to generate earnings.
Further analysis is needed to understand the factors driving these changes in ROE, including profitability, asset utilization, financial leverage, and overall business performance. It is essential for Topgolf Callaway Brands Corp to assess and address the underlying causes of the fluctuating ROE to ensure sustainable and improved performance in the future.
Peer comparison
Dec 31, 2023