Tractor Supply Company (TSCO)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,107,230 | 1,088,710 | 997,114 | 748,958 | 562,354 |
| Total stockholders’ equity | US$ in thousands | 2,149,760 | 2,042,420 | 2,002,660 | 1,923,840 | 1,567,120 |
| ROE | 51.50% | 53.30% | 49.79% | 38.93% | 35.88% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,107,230K ÷ $2,149,760K
= 51.50%
Tractor Supply Company's return on equity (ROE) has shown a positive trend over the past five years. The ROE increased from 35.88% in 2019 to 51.50% in 2023, indicating that the company has been able to effectively generate profits from shareholder equity during this period. This steady growth in ROE reflects the company's efficient use of shareholder funds to generate earnings.
The consistent improvement in ROE from 2019 to 2023 suggests that Tractor Supply Company has been able to enhance its profitability and shareholder value over time. A higher ROE signifies that the company is effectively utilizing its financial resources to generate greater returns for its shareholders.
Overall, the increasing trend in Tractor Supply Company's ROE demonstrates its strong financial performance and efficient management of assets and liabilities to create value for shareholders.
Peer comparison
Dec 31, 2023