PulteGroup Inc (PHM)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	2,602,370	2,617,320	1,946,320	1,406,840	1,016,700
Total stockholders’ equity	US$ in thousands	10,383,300	8,914,100	7,489,520	6,569,990	5,458,180
ROE		25.06%	29.36%	25.99%	21.41%	18.63%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,602,370K ÷ $10,383,300K
= 25.06%

PulteGroup Inc's Return on Equity (ROE) has shown a positive trend over the past five years, increasing from 18.44% in 2019 to 24.97% in 2023. This indicates that the company has been effectively generating profit from the shareholders' equity invested in the business. The steady growth in ROE suggests that PulteGroup has been efficiently utilizing its equity to generate profit, which is a positive sign for investors.

The ROE of PulteGroup Inc exceeded 20% in each of the five years, indicating that the company is generating a strong return on the shareholders' equity. A higher ROE signifies that the company is using its equity efficiently to generate profit, which can be attributed to factors such as effective cost management, strong sales growth, and optimal capital structure.

Overall, the consistent increase in PulteGroup's ROE over the years reflects positively on the company's financial performance and management's ability to create value for the shareholders. Investors and stakeholders may view this trend as a signal of the company's strong financial health and profitability.