Perdoceo Education Corp (PRDO)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	147,590	147,652	95,867	109,637	124,264
Total stockholders’ equity	US$ in thousands	959,536	841,421	725,845	650,110	555,907
ROE		15.38%	17.55%	13.21%	16.86%	22.35%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $147,590K ÷ $959,536K
= 15.38%

Perdoceo Education Corp's Return on Equity (ROE) has exhibited fluctuations over the years based on the provided data.

The ROE decreased from 22.35% as of December 31, 2020, to 16.86% by December 31, 2021, indicating a decline in the company's ability to generate profit from its shareholder equity. This reduction may raise concerns regarding the company's efficiency in utilizing investor funds.

Further, the ROE continued to decrease to 13.21% by December 31, 2022, suggesting a prolonged trend of diminishing returns on equity, which could signify operational challenges or inefficiencies within the organization during this period.

However, there was a positive rebound in the company's ROE to 17.55% by December 31, 2023, showcasing an improvement in the company's profitability relative to its shareholder equity. This uptick may signal successful strategic initiatives or operational optimizations implemented by the firm.

Subsequently, the ROE declined slightly to 15.38% by December 31, 2024, indicating a moderation in the improvement observed in the previous year. It is important for stakeholders to monitor these fluctuations closely to assess Perdoceo Education Corp's ability to sustain and enhance its returns on equity in the future.

In summary, Perdoceo Education Corp's ROE has experienced varying trends over the years, reflecting changes in the company's profitability and efficiency in utilizing shareholder equity. Stakeholders should analyze the underlying factors driving these fluctuations to make informed decisions regarding the company's performance and prospects.