Resideo Technologies Inc (REZI)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 210,000 | 283,000 | 242,000 | 37,000 | 36,000 |
| Total stockholders’ equity | US$ in thousands | 2,749,000 | 2,529,000 | 2,252,000 | 1,993,000 | 1,602,000 |
| ROE | 7.64% | 11.19% | 10.75% | 1.86% | 2.25% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $210,000K ÷ $2,749,000K
= 7.64%
Resideo Technologies Inc's return on equity (ROE) has varied over the past five years. The ROE for the most recent year, ending December 31, 2023, was 7.64%, showing a decrease compared to the prior year's 11.19%. Despite this decrease, the 2023 ROE is still higher than the ROE for the years 2020 and 2019, indicating an improvement in the company's profitability and efficiency in generating returns for shareholders.
The overall trend in ROE for Resideo Technologies Inc has been positive over the five-year period, with a gradual increase from 1.86% in 2020 to 7.64% in 2023. This suggests that the company has been able to effectively utilize its equity to generate profits for shareholders. However, it is important to note that the ROE for 2023 is still lower than the peak ROE of 11.19% in 2022, indicating a potential area for improvement in the company's profitability and efficiency.
Overall, Resideo Technologies Inc's ROE performance demonstrates a positive trend over the past five years, with fluctuations observed year over year. Further analysis of the company's financial statements and operations may provide insights into the factors driving these changes in ROE and opportunities for enhancing shareholder value through improved profitability and efficiency.