NV5 Global Inc (NVEE)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 44,613 | 49,973 | 47,147 | 21,018 | 23,756 |
| Total stockholders’ equity | US$ in thousands | 775,795 | 694,240 | 624,720 | 394,069 | 355,963 |
| ROE | 5.75% | 7.20% | 7.55% | 5.33% | 6.67% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $44,613K ÷ $775,795K
= 5.75%
To analyze NV5 Global Inc's return on equity (ROE) over the past five years, we observe fluctuations in the ROE ratio. The ROE measures the company's profitability relative to its shareholders' equity.
From the data provided, we can see that NV5 Global Inc's ROE has varied over the period, ranging from 5.33% in 2020 to 7.55% in 2021. The ROE decreased to 5.75% in 2023 from 7.20% in 2022.
A higher ROE indicates that the company is generating more profits with each unit of shareholders' equity, reflecting efficient utilization of shareholder funds. A declining ROE may signal decreased profitability relative to equity, which could be a concern.
Further analysis into the company's financial performance, operations, and capital structure would be necessary to identify the factors driving the fluctuations in ROE and to assess the overall financial health and sustainability of NV5 Global Inc.
Peer comparison
Dec 31, 2023