Sterling Construction Company Inc (STRL)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 257,461 | 138,655 | 106,461 | 62,645 | 42,306 |
| Total stockholders’ equity | US$ in thousands | 808,081 | 618,913 | 474,599 | 358,767 | 267,270 |
| ROE | 31.86% | 22.40% | 22.43% | 17.46% | 15.83% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $257,461K ÷ $808,081K
= 31.86%
The analysis of Sterling Construction Company Inc's return on equity (ROE) over the specified period demonstrates a consistent upward trend, indicating an improvement in the company's efficiency at generating profits from shareholders’ equity.
As of December 31, 2020, the ROE stood at 15.83%, reflecting a modest yet respectable level of profitability. This figure increased to 17.46% by December 31, 2021, illustrating a positive growth trajectory in the company’s ability to generate returns on equity. The upward momentum continued more substantially, with the ROE reaching 22.43% by December 31, 2022, signifying a significant improvement in profitability and possibly reflecting enhanced operational performance or strategic efficiencies.
The subsequent year, December 31, 2023, maintained a similar ROE level at 22.40%, indicating stability in the company's profit-generating efficiency despite the previous year's increase. In 2024, the ROE experienced a notable uptick to 31.86%, suggesting a substantial enhancement in the company’s ability to generate profits relative to shareholders’ equity. This increase could be attributable to factors such as increased net income, improved asset utilization, cost management efficiencies, or a combination thereof.
Overall, the progression of Sterling Construction Company Inc’s ROE over the four-year span indicates a trajectory of growing profitability and operational efficiency. The substantial increase by 2024 underscores a potentially strengthening financial position and effective management strategies aimed at maximizing shareholder returns.
Peer comparison
Dec 31, 2024