Trimble Inc (TRMB)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 311,300 | 449,700 | 492,700 | 389,900 | 514,300 |
| Total stockholders’ equity | US$ in thousands | 4,500,100 | 4,050,200 | 3,944,700 | 3,596,900 | 3,119,000 |
| ROE | 6.92% | 11.10% | 12.49% | 10.84% | 16.49% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $311,300K ÷ $4,500,100K
= 6.92%
Trimble Inc's return on equity (ROE) has shown a declining trend over the past five years. From 2019 to 2023, the ROE decreased from 16.49% to 6.92%. This downward trend indicates a decreasing ability of the company to generate profits from the shareholders' equity invested in the business.
A lower ROE could be due to various factors such as increased debt levels, lower net income, or inefficient utilization of assets. It suggests that Trimble Inc may not be effectively utilizing its equity to generate profits for its shareholders. Shareholders might be concerned about the declining trend in ROE as it reflects a lower return on their investment in the company.
It is important for Trimble Inc to explore the underlying reasons for the declining ROE and take necessary actions to improve it. This could involve optimizing the capital structure, increasing profitability, or improving operational efficiency to enhance shareholder value in the long run.
Peer comparison
Dec 31, 2023