Simpson Manufacturing Company Inc (SSD)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 322,224 | 353,987 | 333,995 | 266,447 | 187,000 |
| Total stockholders’ equity | US$ in thousands | 1,805,350 | 1,679,750 | 1,413,380 | 1,184,000 | 980,943 |
| ROE | 17.85% | 21.07% | 23.63% | 22.50% | 19.06% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $322,224K ÷ $1,805,350K
= 17.85%
Simpson Manufacturing Company Inc's return on equity (ROE) has shown a fluctuating trend over the past five years. Starting at 19.06% on December 31, 2020, the ROE increased steadily to reach 23.63% by December 31, 2022, reflecting improved profitability and efficiency in generating returns for shareholders. However, there was a slight decline in ROE to 21.07% by December 31, 2023, followed by a more significant decrease to 17.85% by December 31, 2024.
The variations in ROE could be attributed to changes in the company's financial performance, capital structure, and strategic decisions during the period under review. It is essential for Simpson Manufacturing Company Inc to analyze the factors influencing these fluctuations in ROE to identify areas for improvement and ensure sustainable long-term growth in shareholder value.
Peer comparison
Dec 31, 2024