TRI Pointe Homes Inc (TPH)

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 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Net income (ttm) US$ in thousands 458,029 461,650 467,753 410,475 386,162 456,301 487,665 563,324 576,060 520,527 504,457 485,943 469,267 436,941 382,467 321,126 282,207 285,086 269,265 238,999
Total stockholders’ equity US$ in thousands 3,335,710 3,249,950 3,139,480 3,049,650 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
ROE 13.73% 14.20% 14.90% 13.46% 12.83% 15.61% 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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $458,029K ÷ $3,335,710K
= 13.73%

TRI Pointe Homes Inc has shown a fluctuating trend in its return on equity (ROE) over the past few years. The ROE started at 11.30% as of March 31, 2020, gradually increasing to 20.28% by June 30, 2022. This indicates an improving profitability relative to shareholders' equity.

However, the ROE saw a decline in the subsequent periods, dropping to 12.83% by December 31, 2023. This downtrend continued into the following years, with ROE decreasing to 13.73% by December 31, 2024. While the company may still be generating profits in relation to shareholder investments, the decreasing ROE suggests a potential efficiency or profitability challenge that requires closer examination.

Overall, monitoring TRI Pointe Homes Inc's ROE is essential for investors and stakeholders to assess the company's performance and profitability in utilizing shareholder equity effectively. It is recommended to investigate the factors contributing to the fluctuating ROE trend to make informed decisions regarding the company's financial health.