Shutterstock (SSTK)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	35,932	110,269	76,103	91,883	71,766
Total stockholders’ equity	US$ in thousands	518,350	527,094	447,482	468,482	421,925
ROE		6.93%	20.92%	17.01%	19.61%	17.01%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $35,932K ÷ $518,350K
= 6.93%

The return on equity (ROE) for Shutterstock has shown variability over the past five years. In December 2020, the ROE stood at 17.01%, indicating that for every dollar of shareholder equity, the company generated a return of 17.01%. The ROE improved in the following year, reaching 19.61% by December 2021, reflecting a stronger performance in utilizing shareholder funds to generate profits.

However, there was a slight decline in ROE in December 2022, settling back to 17.01%. This fluctuation suggests some inconsistencies in the company's ability to generate profit relative to its equity base.

The trend reversed positively in December 2023, with the ROE increasing to 20.92%. This improvement may indicate enhanced profitability and efficiency in utilizing equity capital to create value for shareholders.

Nevertheless, there was a notable decrease in ROE by December 2024, dropping to 6.93%. This decline might raise concerns about the company's profitability and effectiveness in generating returns on equity compared to previous periods.

Overall, the fluctuating trend in Shutterstock's ROE highlights the importance of continuous monitoring and analysis of the company's performance in effectively leveraging shareholder equity to drive profitability and create sustainable value over time.