Upbound Group Inc. (UPBD)
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 | 123,478 | 81,242 | 54,745 | -24,822 | -5,179 | 8,722 | -1,419 | 63,924 | 12,357 | 19,522 | 46,567 | 88,151 | 134,940 | 181,428 | 224,191 | 201,375 | 208,115 | 192,306 | 159,553 | 215,515 |
| Total stockholders’ equity | US$ in thousands | 628,984 | 611,820 | 596,301 | 578,295 | 560,372 | 597,245 | 625,593 | 670,342 | 525,146 | 548,163 | 558,834 | 523,058 | 513,276 | 854,079 | 825,164 | 742,187 | 592,080 | 542,337 | 486,576 | 476,023 |
| ROE | 19.63% | 13.28% | 9.18% | -4.29% | -0.92% | 1.46% | -0.23% | 9.54% | 2.35% | 3.56% | 8.33% | 16.85% | 26.29% | 21.24% | 27.17% | 27.13% | 35.15% | 35.46% | 32.79% | 45.27% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $123,478K ÷ $628,984K
= 19.63%
Upbound Group Inc.'s return on equity (ROE) has shown variations over the past few years. The ROE peaked at 45.27% as of March 31, 2020, reflecting strong profitability relative to shareholders' equity. However, the ROE declined gradually over the subsequent periods, reaching 8.33% by June 30, 2022, and dropping into negative territory in the following quarters, indicating decreased profitability and potentially inefficient use of shareholder funds.
A positive ROE signifies that the company is generating profit from the shareholders' investments, whereas a negative ROE indicates a loss. The negative ROE figures recorded in the latter part of 2023 and early 2024 suggest that Upbound Group Inc. faced challenges in generating profits relative to the equity invested within those periods.
Moreover, the fluctuation in ROE can be attributed to various factors such as changes in revenue, expenses, debt levels, or asset utilization. It is essential for Upbound Group Inc. to address the declining trend in ROE to ensure sustainable and profitable operations in the future, as a healthy ROE is indicative of efficient management and the ability to generate value for shareholders.
Peer comparison
Dec 31, 2024