TRI Pointe Homes Inc (TPH)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	343,702	576,060	469,267	282,207	207,187
Total stockholders’ equity	US$ in thousands	3,010,960	2,832,390	2,447,620	2,232,540	2,186,530
ROE		11.42%	20.34%	19.17%	12.64%	9.48%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $343,702K ÷ $3,010,960K
= 11.42%

Tri Pointe Homes Inc.'s return on equity (ROE) has fluctuated over the past five years, ranging from 9.48% in 2019 to 20.34% in 2022. The company's ROE in 2023 decreased to 11.42% compared to the previous year. This suggests that the company's ability to generate profits from shareholders' equity declined in 2023. Overall, while Tri Pointe Homes Inc.'s ROE has shown variability, it has generally demonstrated a positive trend, indicating that the company has been effective in utilizing its shareholders' equity to generate returns over the years. However, the recent decline in ROE in 2023 may warrant further investigation to understand the factors influencing this trend.