TRI Pointe Homes Inc (TPH)

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	343,702	413,841	487,665	563,324	576,060	520,527	504,457	485,943	469,267	436,941	382,467	321,126	282,207	285,086	269,265	238,999	207,187	188,576	189,684	227,102
Total stockholders’ equity	US$ in thousands	3,010,960	2,923,400	2,896,110	2,863,620	2,832,390	2,625,730	2,487,570	2,408,230	2,447,620	2,354,140	2,279,290	2,239,760	2,232,540	2,198,090	2,175,800	2,115,280	2,186,530	2,111,680	2,086,630	2,057,020
ROE		11.42%	14.16%	16.84%	19.67%	20.34%	19.82%	20.28%	20.18%	19.17%	18.56%	16.78%	14.34%	12.64%	12.97%	12.38%	11.30%	9.48%	8.93%	9.09%	11.04%

December 31, 2023 calculation

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

Tri Pointe Homes Inc.'s return on equity (ROE) has displayed a declining trend over the past eight quarters. In Q1 2022, the ROE was at its peak at 20.34%, which has gradually decreased to 11.42% in Q4 2023. This indicates that the company's ability to generate profit from its shareholders' equity has weakened over time.

A decreasing ROE could suggest various factors impacting the company's performance, such as declining net income, inefficient asset utilization, or increased shareholder equity. In this case, it is essential for Tri Pointe Homes Inc. to evaluate and address the underlying issues affecting its ROE to ensure sustainable and robust financial performance in the future.