Callaway Golf Company (MODG)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -1,447,700 | -12,100 | 21,200 | 76,500 | 95,000 | 99,400 | 108,200 | 96,200 | 157,900 | 204,374 | 149,874 | 136,174 | 321,974 | 307,624 | 376,056 | 116,672 | -126,934 | -115,576 | -136,960 | 59,655 |
| Total stockholders’ equity | US$ in thousands | 2,407,700 | 3,935,600 | 3,933,500 | 3,887,000 | 3,878,200 | 3,951,900 | 3,932,700 | 3,811,100 | 3,774,300 | 3,806,500 | 3,790,200 | 3,700,500 | 3,682,900 | 3,721,930 | 3,739,460 | 3,612,820 | 675,644 | 688,534 | 624,548 | 759,967 |
| ROE | -60.13% | -0.31% | 0.54% | 1.97% | 2.45% | 2.52% | 2.75% | 2.52% | 4.18% | 5.37% | 3.95% | 3.68% | 8.74% | 8.27% | 10.06% | 3.23% | -18.79% | -16.79% | -21.93% | 7.85% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-1,447,700K ÷ $2,407,700K
= -60.13%
The return on equity (ROE) of Callaway Golf Company has shown fluctuations over the reporting periods provided. The ROE was positive and relatively healthy at 7.85% as of March 31, 2020. However, there was a significant decline in the ROE to -21.93% as of June 30, 2020, indicating a negative impact on shareholders' equity. Subsequently, the ROE continued to be negative in the following quarters, with values of -16.79%, -18.79%, and 3.23% as of September 30, 2020, December 31, 2020, and March 31, 2021, respectively.
There was a positive turnaround in the ROE from June 30, 2021, where it increased to 10.06%, reflecting a favorable performance in generating profits with respect to shareholders' equity. The positive trend continued with ROE values of 8.27%, 8.74%, and 3.68% as of September 30, 2021, December 31, 2021, and March 31, 2022, respectively. However, the ROE experienced a slight decline to 3.95% as of June 30, 2022, before increasing to 5.37% as of September 30, 2022.
The ROE decreased to 4.18% as of December 31, 2022, and further declined to 2.52% by March 31, 2023, showing a decreasing trend in profitability relative to shareholders' equity. This decline continued with ROE values of 2.75%, 2.52%, and 2.45% as of June 30, 2023, September 30, 2023, and December 31, 2023, respectively. The ROE steeply declined to 1.97% as of March 31, 2024, followed by a sharp decrease to 0.54% as of June 30, 2024, indicating challenges in generating returns on equity.
The most notable observation is the significant drop in ROE to -60.13% as of December 31, 2024, which raises concerns about the company's profitability and efficiency in utilizing shareholders' equity. Overall, the inconsistent performance of Callaway Golf Company's ROE over the period suggests varying levels of profitability and efficiency in generating returns for shareholders.
Peer comparison
Dec 31, 2024