Upbound Group Inc. (UPBD)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -5,179 | 12,357 | 134,940 | 208,115 | 173,546 |
| Total stockholders’ equity | US$ in thousands | 560,372 | 525,146 | 513,276 | 592,080 | 458,963 |
| ROE | -0.92% | 2.35% | 26.29% | 35.15% | 37.81% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-5,179K ÷ $560,372K
= -0.92%
The return on equity (ROE) for Upbound Group Inc. has shown a declining trend over the past five years, as evidenced by the decreasing percentages from 37.81% in 2019 to -0.92% in 2023. This indicates that the company's ability to generate profits from shareholders' equity has weakened over time.
The ROE of -0.92% in 2023 signifies that the company is currently facing challenges in generating profits relative to the equity invested by shareholders, resulting in a negative return. This could be a cause for concern as it indicates potential inefficiencies or financial difficulties within the company.
The significant decline in ROE from 2019 to 2023 suggests a deterioration in the company's profitability and efficiency in utilizing equity to generate returns. It may be important for stakeholders and management to investigate the reasons behind this downward trend and implement strategies to improve the company's financial performance and ROE in the future.
Peer comparison
Dec 31, 2023