TRI Pointe Homes Inc (TPH)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 458,029 | 343,702 | 576,060 | 469,267 | 282,207 |
| Total stockholders’ equity | US$ in thousands | 3,335,710 | 3,010,960 | 2,832,390 | 2,447,620 | 2,232,540 |
| ROE | 13.73% | 11.42% | 20.34% | 19.17% | 12.64% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $458,029K ÷ $3,335,710K
= 13.73%
TRI Pointe Homes Inc's Return on Equity (ROE) has shown fluctuating trends over the past five years. In December 31, 2020, the ROE stood at 12.64%, indicating the company generated $0.1264 in net income for every dollar of equity during that period.
The ROE increased significantly to 19.17% by December 31, 2021, reflecting improved profitability and efficiency in asset utilization. This uptrend continued in 2022, with ROE reaching 20.34%, suggesting that the company was effectively utilizing its shareholders' equity to generate profits.
However, there was a slight decline in ROE to 11.42% by December 31, 2023. This decrease could be attributed to various factors such as increased competition, economic conditions, or changes in the company's capital structure.
By December 31, 2024, the ROE improved to 13.73%, indicating a rebound in profitability. It is essential for investors and stakeholders to monitor these fluctuations in ROE as it provides insight into the company's ability to generate profits from its equity investments and how efficiently it is using shareholder funds.
Peer comparison
Dec 31, 2024