Resideo Technologies Inc (REZI)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 116,000 | 210,000 | 283,000 | 242,000 | 37,000 |
| Total stockholders’ equity | US$ in thousands | 3,309,000 | 2,749,000 | 2,529,000 | 2,252,000 | 1,993,000 |
| ROE | 3.51% | 7.64% | 11.19% | 10.75% | 1.86% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $116,000K ÷ $3,309,000K
= 3.51%
Based on the provided data, Resideo Technologies Inc's return on equity (ROE) has shown fluctuations over the past five years. In December 31, 2020, the ROE was relatively low at 1.86%, indicating limited profitability relative to shareholders' equity. However, there was a substantial improvement in December 31, 2021, with the ROE increasing to 10.75%, suggesting a significant enhancement in the company's ability to generate profit from shareholders' equity.
In the following years, the ROE continued to show positive trends, reaching 11.19% in December 31, 2022, which indicates further growth in return on equity. However, there was a slight decline in December 31, 2023, with the ROE decreasing to 7.64%, possibly reflecting challenges or changes in the company's financial performance.
By December 31, 2024, the ROE further decreased to 3.51%, signaling a significant drop compared to the previous year. This decline may raise concerns about the company's profitability and efficiency in generating returns for shareholders.
Overall, the trend in Resideo Technologies Inc's ROE indicates a mix of positive improvements and fluctuations over the five-year period, highlighting the importance of monitoring the company's financial performance and identifying factors influencing its return on equity.