Strategic Education Inc (STRA)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	112,684	69,791	46,670	55,087	86,268
Total stockholders’ equity	US$ in thousands	1,662,500	1,652,520	1,635,790	1,713,990	1,748,320
ROE		6.78%	4.22%	2.85%	3.21%	4.93%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $112,684K ÷ $1,662,500K
= 6.78%

The return on equity (ROE) of Strategic Education Inc has shown fluctuations over the past five years. In December 31, 2020, the ROE stood at 4.93%, indicating that for every dollar of shareholders' equity, the company generated a profit of approximately 4.93 cents. However, by December 31, 2021, the ROE decreased to 3.21%, suggesting a decrease in profitability relative to the equity invested.

Subsequently, in December 31, 2022, the ROE further declined to 2.85%, indicating continued challenges in generating returns for shareholders. Nevertheless, by December 31, 2023, there was a slight improvement as the ROE rose to 4.22%, albeit still below the initial levels observed in 2020.

The most recent data point, as of December 31, 2024, shows a significant improvement in ROE to 6.78%, signaling a notable recovery in profitability relative to shareholders' equity. This increase may indicate potential positive developments within the company that have led to enhanced financial performance.

Overall, while there have been fluctuations in ROE over the five-year period, the recent improvement in 2024 suggests a positive trajectory in terms of the company's profitability and efficiency in utilizing shareholders' equity to generate returns. Further analysis and monitoring of ROE trends will be crucial to assess the company's ongoing financial health and performance.