Tractor Supply Company (TSCO)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,101,239 | 1,112,736 | 1,126,267 | 1,122,305 | 1,107,226 | 1,130,193 | 1,109,329 | 1,084,573 | 1,088,712 | 1,039,180 | 1,029,443 | 1,002,987 | 997,114 | 911,669 | 877,879 | 846,535 | 748,958 | 757,244 | 688,767 | 569,299 |
| Total stockholders’ equity | US$ in thousands | 2,270,330 | 2,288,760 | 2,305,330 | 2,124,010 | 2,149,760 | 2,111,130 | 2,087,150 | 1,914,550 | 2,042,420 | 1,941,140 | 1,913,870 | 1,790,020 | 2,002,660 | 2,020,750 | 1,980,110 | 1,852,300 | 1,923,840 | 1,875,870 | 1,695,730 | 1,353,720 |
| ROE | 48.51% | 48.62% | 48.85% | 52.84% | 51.50% | 53.53% | 53.15% | 56.65% | 53.31% | 53.53% | 53.79% | 56.03% | 49.79% | 45.12% | 44.33% | 45.70% | 38.93% | 40.37% | 40.62% | 42.05% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,101,239K ÷ $2,270,330K
= 48.51%
Tractor Supply Company has shown a consistent trend in its return on equity (ROE) over the past few years. The ROE has gradually increased from 42.05% in March 2020 to a peak of 56.65% in March 2023 before slightly decreasing to 48.51% by December 2024. This indicates that the company has been effectively generating profit from the shareholders' equity invested in the business.
The ROE of Tractor Supply Company has generally been above 40%, reflecting the company's ability to generate substantial returns for its shareholders. The increasing trend in ROE until March 2023 suggests improving profitability and efficiency in utilizing shareholder funds. However, the slight decline in ROE towards the end of 2024 may indicate a need for closer scrutiny to ensure sustained profitability and value creation for shareholders.
Overall, Tractor Supply Company's ROE performance demonstrates strong profitability and efficiency in utilizing shareholder capital over the analyzed period. It is important for the company to continue monitoring and optimizing its financial performance to maintain and enhance shareholder value in the long run.
Peer comparison
Dec 31, 2024