Proto Labs Inc (PRLB)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 16,593 | 17,220 | -103,462 | 33,372 | 50,867 |
| Total stockholders’ equity | US$ in thousands | 670,151 | 695,295 | 697,648 | 828,493 | 644,356 |
| ROE | 2.48% | 2.48% | -14.83% | 4.03% | 7.89% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $16,593K ÷ $670,151K
= 2.48%
Proto Labs Inc's return on equity (ROE) has shown a declining trend over the years. As of December 31, 2020, the ROE was 7.89%, indicating a reasonable return on shareholders' equity. However, by December 31, 2021, the ROE had decreased to 4.03%, reflecting a decrease in the company's profitability relative to its equity.
The trend continued to worsen as the ROE plummeted to -14.83% by December 31, 2022, indicating a significant loss on shareholders' equity. This negative ROE suggests that the company's net income was insufficient to cover shareholder investments in that period.
Although there was a slight improvement in the following years, with the ROE reaching 2.48% by December 31, 2023, and remaining at the same level by December 31, 2024, the ROE still remained relatively low. This indicates that the company's profitability and efficiency in generating returns for shareholders have not fully recovered from the decline experienced in 2022.
Overall, the declining trend in Proto Labs Inc's ROE suggests potential challenges in effectively utilizing shareholder equity to generate profits, which may require further analysis and strategic actions to improve the company's financial performance.
Peer comparison
Dec 31, 2024