Taylor Morn Home (TMHC)

Return on equity (ROE)

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	768,929	871,675	1,010,763	1,067,148	1,052,800	1,050,193	908,548	741,708	663,026	484,721	431,364	372,891	243,439	203,678	155,913	172,090	254,652	209,049	235,605	212,432
Total stockholders’ equity	US$ in thousands	5,314,940	5,175,110	5,095,310	4,846,550	4,630,330	4,403,470	4,193,900	4,094,800	3,925,850	3,745,900	3,668,850	3,655,560	3,504,540	3,542,140	3,424,740	3,423,040	2,537,710	2,480,200	2,398,660	2,390,730
ROE		14.47%	16.84%	19.84%	22.02%	22.74%	23.85%	21.66%	18.11%	16.89%	12.94%	11.76%	10.20%	6.95%	5.75%	4.55%	5.03%	10.03%	8.43%	9.82%	8.89%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $768,929K ÷ $5,314,940K
= 14.47%

Taylor Morrison Home Corp.'s return on equity (ROE) has exhibited a declining trend over the past eight quarters. The ROE decreased from 18.31% in Q1 2022 to 14.47% in Q4 2023. This downward trajectory suggests a potential inefficiency in generating value from shareholders' equity.

The average ROE over the period is 19.53%, indicating that, on average, the company generated approximately $0.20 in profit for every $1 of shareholders' equity invested. However, it is important to note that the company's ROE has been higher than the average in some quarters, reaching a peak of 23.94% in Q3 2022.

The decreasing trend in ROE could be attributed to various factors such as declining profitability, increasing debt levels, or inefficient utilization of assets. Investors and analysts may need to further investigate the drivers behind this trend to assess the company's financial performance and sustainability.