Tractor Supply Company (TSCO)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,101,240 | 1,107,230 | 1,088,710 | 997,114 | 748,958 |
| Total stockholders’ equity | US$ in thousands | 2,270,330 | 2,149,760 | 2,042,420 | 2,002,660 | 1,923,840 |
| ROE | 48.51% | 51.50% | 53.30% | 49.79% | 38.93% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,101,240K ÷ $2,270,330K
= 48.51%
Tractor Supply Company has exhibited a steady increase in return on equity (ROE) over the past five years. The ROE rose from 38.93% as of December 31, 2020, to 48.51% as of December 31, 2024, signaling an upward trend in the company's profitability in relation to shareholders' equity.
The most significant spike in ROE was seen between December 2020 and December 2022, with the metric jumping from 38.93% to 53.30%. This substantial improvement indicates that Tractor Supply Company effectively utilized its equity to generate higher returns for its shareholders during this period.
While there was a slight decrease in ROE from 53.30% in December 2022 to 48.51% in December 2024, the company has maintained a strong ROE above the initial value throughout the period under review. This consistent performance suggests that Tractor Supply Company has efficiently managed its assets and liabilities to generate profits in excess of the equity invested by shareholders.
Overall, Tractor Supply Company's ROE trajectory reflects a healthy financial performance and efficient utilization of equity, demonstrating the company's ability to generate value for its shareholders over the analyzed period.
Peer comparison
Dec 31, 2024