TechTarget Inc (TTGT)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	4,461	13,251	26,350	36,090	41,609	18,455	13,598	6,303	949	20,220	17,018	16,671	17,068	17,845	16,414	15,792	16,875	15,464	13,882	14,151
Total stockholders’ equity	US$ in thousands	222,927	209,008	202,297	210,022	217,474	229,838	238,402	241,196	222,757	208,521	193,832	182,138	202,506	162,256	153,546	145,375	152,951	147,771	141,380	135,125
ROE		2.00%	6.34%	13.03%	17.18%	19.13%	8.03%	5.70%	2.61%	0.43%	9.70%	8.78%	9.15%	8.43%	11.00%	10.69%	10.86%	11.03%	10.46%	9.82%	10.47%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $4,461K ÷ $222,927K
= 2.00%

Techtarget Inc.'s return on equity (ROE) has fluctuated over the past eight quarters, ranging from a low of 2.00% in Q4 2023 to a high of 19.13% in Q4 2022. The downward trend in ROE from Q4 2022 to Q4 2023 suggests a decrease in the company's profitability relative to shareholders' equity. This decline may be a cause for concern as it indicates that the company is not generating as much profit per unit of shareholder investment.

It is worth noting that a higher ROE indicates that a company is better at generating profits from its shareholders' equity. In this case, Techtarget's ROE peaked at 19.13% in Q4 2022, which might have been a period of strong financial performance. However, the subsequent decline in ROE raises questions about the company's ability to sustain or improve its profitability over time.

Investors and analysts should closely monitor Techtarget Inc.'s financial performance and profitability metrics to understand the factors driving the fluctuations in ROE and assess the company's long-term sustainability and growth prospects.