Simpson Manufacturing Company Inc (SSD)
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 | 353,988 | 356,792 | 341,014 | 327,373 | 333,995 | 346,186 | 331,721 | 310,634 | 266,445 | 226,286 | 219,565 | 200,561 | 187,000 | 185,419 | 162,048 | 148,146 | 133,982 | 118,682 | 119,357 | 123,866 |
| Total stockholders’ equity | US$ in thousands | 1,679,750 | 1,669,490 | 1,583,610 | 1,487,410 | 1,413,380 | 1,337,560 | 1,284,640 | 1,231,810 | 1,184,000 | 1,123,000 | 1,086,900 | 1,014,510 | 980,943 | 960,800 | 894,212 | 841,594 | 891,957 | 876,947 | 868,421 | 835,418 |
| ROE | 21.07% | 21.37% | 21.53% | 22.01% | 23.63% | 25.88% | 25.82% | 25.22% | 22.50% | 20.15% | 20.20% | 19.77% | 19.06% | 19.30% | 18.12% | 17.60% | 15.02% | 13.53% | 13.74% | 14.83% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $353,988K ÷ $1,679,750K
= 21.07%
Simpson Manufacturing Co., Inc. has shown a consistent trend in its return on equity (ROE) over the past eight quarters. The ROE has gradually decreased from 25.22% in Q1 2022 to 21.07% in Q4 2023. This indicates that the company's profitability in relation to its shareholders' equity has slightly declined over this period.
While a declining trend in ROE may raise some concerns, it is essential to consider various factors that could be influencing this metric. A decrease in ROE could be attributed to factors such as increased debt levels, decreased net income, or inefficient utilization of equity. It is crucial for stakeholders to analyze the drivers behind the changes in ROE to understand the company's financial performance better and make informed decisions.
Overall, Simpson Manufacturing Co., Inc. should closely monitor its ROE and take appropriate measures to improve this key financial ratio, ensuring sustainable profitability and efficient use of shareholders' equity.
Peer comparison
Dec 31, 2023