Tempur Sealy International Inc (TPX)
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 | 368,100 | 392,700 | 412,100 | 410,300 | 455,700 | 529,800 | 574,500 | 624,700 | 624,500 | 593,400 | 537,400 | 419,600 | 348,800 | 250,300 | 202,200 | 220,800 | 189,500 | 155,600 | 124,600 | 105,800 |
| Total stockholders’ equity | US$ in thousands | 333,400 | 223,700 | 147,500 | 43,600 | -12,300 | -143,300 | -180,900 | -91,300 | 285,800 | 371,000 | 410,100 | 327,200 | 503,600 | 456,200 | 249,700 | 208,400 | 359,500 | 336,500 | 305,900 | 253,500 |
| ROE | 110.41% | 175.55% | 279.39% | 941.06% | — | — | — | — | 218.51% | 159.95% | 131.04% | 128.24% | 69.26% | 54.87% | 80.98% | 105.95% | 52.71% | 46.24% | 40.73% | 41.74% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $368,100K ÷ $333,400K
= 110.41%
Tempur Sealy International Inc's return on equity (ROE) has displayed significant volatility in the past four quarters. The ROE ratio peaked at an impressive 1,182.42% in Q1 2023, indicating that the company generated considerable profits in relation to shareholder equity during that period. This exceptional performance in Q1 2023 followed by declining ROE figures in the subsequent quarters suggests that the company experienced a temporary spike rather than sustained profitability.
The inconsistent trend in ROE raises questions about the company's ability to efficiently utilize its shareholders' equity to generate profits over time. It is essential for investors and stakeholders to further investigate the factors contributing to the fluctuating ROE levels to assess the company's overall financial health and sustainability of returns to shareholders.
Peer comparison
Dec 31, 2023