Callaway Golf Company (MODG)
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 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 79,408 | 80,127 | 58,596 | 90,532 |
| Total stockholders’ equity | US$ in thousands | 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 | 767,353 | 777,356 | 761,936 | 741,854 |
| ROE | 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% | 10.35% | 10.31% | 7.69% | 12.20% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $95,000K ÷ $3,878,200K
= 2.45%
Based on the data provided, Topgolf Callaway Brands Corp's return on equity (ROE) has shown a decreasing trend over the past eight quarters. The ROE has declined from 4.18% in Q4 2022 to 2.45% in Q4 2023. This downward trend indicates that the company's ability to generate profits from shareholders' equity has weakened.
The ROE values ranging from 2.45% to 2.75% in the most recent quarters indicate that the company's profitability relative to shareholders' investment has been relatively low. This suggests that the company may be facing challenges in efficiently utilizing its equity to generate earnings for shareholders.
In comparison, the ROE values in the earlier quarters of 2022 were higher, with figures around 3.68% to 5.37%. This decline in ROE over time may raise concerns among investors about the company's financial performance and its ability to generate satisfactory returns on equity.
Overall, the declining trend in Topgolf Callaway Brands Corp's ROE underscores the importance of closely monitoring the company's financial performance and evaluating its strategies for improving profitability and efficiency in utilizing shareholders' equity.
Peer comparison
Dec 31, 2023