Simpson Manufacturing Company Inc (SSD)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 353,987 | 333,995 | 266,447 | 187,000 | 133,982 |
| Total stockholders’ equity | US$ in thousands | 1,679,750 | 1,413,380 | 1,184,000 | 980,943 | 891,957 |
| ROE | 21.07% | 23.63% | 22.50% | 19.06% | 15.02% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $353,987K ÷ $1,679,750K
= 21.07%
Simpson Manufacturing Co., Inc.'s return on equity (ROE) has shown a positive trend over the past five years. The ROE increased from 15.02% in 2019 to 21.07% in 2023, indicating improved profitability and efficiency in generating returns for shareholders' equity.
The company's ROE peaked at 23.63% in 2022 before slightly decreasing to 21.07% in 2023. This indicates that the company was able to efficiently utilize its equity to generate profits, although there was a slight dip in 2023 compared to the previous year.
Overall, Simpson Manufacturing Co., Inc.'s ROE performance has been consistently above 15% over the past five years, reflecting the company's ability to generate strong returns for shareholders relative to the equity invested in the business. This suggests that the company has been effectively managing its resources and assets to drive profitability and create value for its shareholders.
Peer comparison
Dec 31, 2023