Resideo Technologies Inc (REZI)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 210,000 | 167,000 | 209,000 | 253,000 | 283,000 | 311,000 | 316,000 | 280,000 | 242,000 | 234,000 | 241,000 | 107,000 | 37,000 | -31,000 | -98,000 | -33,000 | 36,000 | 61,000 | 364,000 | |
| Total stockholders’ equity | US$ in thousands | 2,749,000 | 2,645,000 | 2,677,000 | 2,604,000 | 2,529,000 | 2,400,000 | 2,394,000 | 2,361,000 | 2,252,000 | 2,158,000 | 2,103,000 | 2,032,000 | 1,993,000 | 1,605,000 | 1,495,000 | 1,521,000 | 1,602,000 | 1,573,000 | 1,593,000 | 1,592,000 |
| ROE | 7.64% | 6.31% | 7.81% | 9.72% | 11.19% | 12.96% | 13.20% | 11.86% | 10.75% | 10.84% | 11.46% | 5.27% | 1.86% | -1.93% | -6.56% | -2.17% | 2.25% | 3.88% | 22.85% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $210,000K ÷ $2,749,000K
= 7.64%
Resideo Technologies Inc's return on equity (ROE) has exhibited a declining trend over the past eight quarters. The ROE decreased from 11.19% in Q4 2022 to 7.64% in Q4 2023. This indicates that the company's ability to generate profits from its shareholders' equity has weakened. Although there was a slight increase in ROE in Q3 2023 compared to the previous quarter, the overall trend suggests a downward trajectory. The highest ROE was observed in Q2 2022 at 13.20%, but it has steadily declined since then. It is essential for Resideo Technologies Inc to address the factors contributing to the decreasing ROE and implement strategies to improve shareholder value and profitability.