TKO Group Holdings, Inc. (TKO)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 9,403 | -34,897 | -13,542 | 8,765 | 200,207 | 281,880 | 366,431 | 379,019 | 387,275 | 379,791 | 294,235 | 229,434 | 177,408 |
| Total stockholders’ equity | US$ in thousands | 4,091,020 | 4,044,560 | 3,991,620 | 4,034,780 | 4,108,980 | 4,164,900 | 586,924 | 561,234 | 568,916 | 471,236 | 440,832 | 401,444 | 374,660 |
| ROE | 0.23% | -0.86% | -0.34% | 0.22% | 4.87% | 6.77% | 62.43% | 67.53% | 68.07% | 80.59% | 66.75% | 57.15% | 47.35% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $9,403K ÷ $4,091,020K
= 0.23%
From December 31, 2021, to September 30, 2023, TKO Group Holdings, Inc.'s return on equity (ROE) showed a consistent positive trend, increasing from 47.35% to 80.59% during this period. This indicated that the company was efficiently utilizing its equity to generate profit for its shareholders.
However, from December 31, 2023, to December 31, 2024, the ROE exhibited a significant decline, dropping from 4.87% to near-zero and even turning negative in some quarters. These declining ROE figures suggested that the company's ability to generate profit from its shareholders' equity had weakened, possibly due to factors such as increased expenses, lower revenues, or inefficient asset utilization.
Overall, despite the initial positive trend, the fluctuating and ultimately declining ROE figures in the later periods raise concerns about TKO Group Holdings, Inc.'s financial performance and efficiency in utilizing its shareholders' equity effectively to generate returns. Further analysis of the company's financial statements and operations would be necessary to understand the underlying reasons for this downward trend in ROE.
Peer comparison
Dec 31, 2024