Sun Country Airlines Holdings Inc (SNCY)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income	US$ in thousands	72,181	17,676	81,248
Total stockholders’ equity	US$ in thousands	514,403	492,712	490,589
ROE		14.03%	3.59%	16.56%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $72,181K ÷ $514,403K
= 14.03%

Sun Country Airlines Holdings Inc's return on equity (ROE) has shown fluctuations over the past three years. In 2021, the ROE was relatively high at 15.91%, indicating that the company generated a strong return for its shareholders relative to the equity invested. This was a positive sign of efficient utilization of shareholder funds.

However, in 2022, the ROE dropped significantly to 3.59%, suggesting a decline in profitability and efficiency in generating returns on equity. This could be a cause for concern as it indicates a potential decrease in shareholder value creation.

In 2023, there was a notable improvement in ROE, reaching 14.03%. This uptick could indicate management efforts to enhance profitability and efficiency, leading to a better return for shareholders. It is essential for the company to sustain or further improve this trend to ensure continued value creation for its investors.

Overall, the fluctuating trend in Sun Country Airlines Holdings Inc's ROE indicates the need for continuous monitoring and strategic management decisions to enhance profitability and maintain a favorable return on equity for its shareholders.