Sterling Construction Company Inc (STRL)
Return on equity (ROE)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 265,890 | 257,461 | 184,421 | 162,453 | 150,054 | 138,655 | 119,139 | 109,309 | 95,790 | 95,393 | 85,644 | 77,247 | 71,342 | 62,645 | 57,561 | 51,592 | 49,746 | 42,306 | 58,783 | 51,583 |
| Total stockholders’ equity | US$ in thousands | 805,416 | 808,081 | 716,524 | 670,668 | 644,566 | 618,913 | 580,347 | 537,573 | 494,664 | 474,599 | 437,111 | 405,233 | 375,909 | 358,767 | 321,688 | 297,996 | 275,080 | 267,270 | 257,628 | 239,637 |
| ROE | 33.01% | 31.86% | 25.74% | 24.22% | 23.28% | 22.40% | 20.53% | 20.33% | 19.36% | 20.10% | 19.59% | 19.06% | 18.98% | 17.46% | 17.89% | 17.31% | 18.08% | 15.83% | 22.82% | 21.53% |
March 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $265,890K ÷ $805,416K
= 33.01%
The analysis of Sterling Construction Company Inc.'s return on equity (ROE) over the period from June 2020 through March 2025 indicates a generally positive trend characterized by sustained growth and increasing profitability for shareholders.
Initially, the ROE demonstrated fluctuations within the range of approximately 15.83% to 22.82%, with the highest recorded at 22.82% on September 30, 2020. This period reflects a period of relatively stable profitability, albeit with some variability. Subsequent quarters exhibit some volatility; for example, a decline to 15.83% on December 31, 2020, suggests a temporary decrease in efficiency in generating profits relative to equity.
From 2021 onwards, the ROE showed signs of stabilization and gradual improvement. The figure hovered between roughly 17.31% and 20.10%, with a modest upward trend observed as of December 31, 2021, reaching 17.46%. The early part of 2022 shows a slight increase, with March 2022 recording an 18.98% ROE, further climbing to 19.59% by September 2022 and stabilizing around 20.10% as of December 2022.
A more consistent upward trajectory is evident from 2023 onward. The ROE increased from 19.36% in March 2023 to 20.33% in June 2023, and further to 20.53% by September 2023. The upward momentum is accentuated in late 2023 and early 2024, culminating in a notable rise to 31.86% on December 31, 2024, and reaching 33.01% by March 2025.
Overall, the trend indicates that Sterling Construction Company Inc. has experienced a significant improvement in its ability to generate profits relative to shareholders' equity over the analyzed period. The consistent upward movement, especially in the most recent quarters, suggests enhanced operational efficiency, effective management strategies, or favorable market conditions contributing to shareholder value.
This positive trajectory in ROE reflects the company's strengthening financial performance and suggests that it is increasingly effective in employing its equity base to generate profits, which could be indicative of sustainable growth potential if the trend persists.
Peer comparison
Mar 31, 2025