Trimble Inc (TRMB)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,504,400 | 311,300 | 449,700 | 492,800 | 389,900 |
| Total stockholders’ equity | US$ in thousands | 5,745,300 | 4,500,100 | 4,050,200 | 3,944,700 | 3,596,900 |
| ROE | 26.18% | 6.92% | 11.10% | 12.49% | 10.84% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,504,400K ÷ $5,745,300K
= 26.18%
Trimble Inc's Return on Equity (ROE) has demonstrated fluctuations over the past five years, ranging from 6.92% to 26.18%. The ROE increased from 10.84% in December 2020 to 12.49% in December 2021, indicating an improvement in the company's ability to generate profits from its shareholder's equity. However, there was a slight decline in ROE to 11.10% in December 2022, followed by a significant drop to 6.92% in December 2023, reflecting a potential decrease in profitability relative to equity.
The most notable development in the analysis is the substantial increase in ROE to 26.18% in December 2024, signifying a remarkable surge in profitability compared to the previous years. This surge could be attributed to various factors such as increased efficiency in asset utilization, cost management, or revenue growth initiatives.
Overall, while Trimble Inc's ROE has experienced fluctuations, the significant improvement in ROE in 2024 suggests a positive outlook for the company's profitability and efficiency in utilizing shareholder's equity for generating returns. It is essential for stakeholders to closely monitor the company's performance and strategies to sustain and potentially build on this notable increase in ROE.
Peer comparison
Dec 31, 2024