US Foods Holding Corp (USFD)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 494,000 | 506,000 | 265,000 | 164,000 | -226,000 |
| Total stockholders’ equity | US$ in thousands | 4,528,000 | 4,749,000 | 3,961,000 | 3,735,000 | 3,530,000 |
| ROE | 10.91% | 10.65% | 6.69% | 4.39% | -6.40% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $494,000K ÷ $4,528,000K
= 10.91%
Based on the provided data, US Foods Holding Corp's return on equity (ROE) has shown improvement over the years. The ROE was negative at -6.40% as of December 31, 2020, indicating that the company was not effectively utilizing its shareholders' equity to generate profits. However, the ROE turned positive in subsequent years, reaching 4.39% as of December 31, 2021, and further improving to 6.69% by December 31, 2022.
The most significant increase in ROE occurred between December 31, 2022, and December 31, 2023, where the ROE jumped to 10.65%, indicating that US Foods Holding Corp was becoming more efficient in generating profits relative to its equity base. This positive trend continued into December 31, 2024, with the ROE further rising to 10.91%, demonstrating sustained improvement in the company's profitability.
Overall, the upward trajectory of US Foods Holding Corp's ROE suggests enhanced efficiency in utilizing shareholder equity to generate returns for investors. This improvement in ROE is a positive indicator of the company's financial performance and management effectiveness in creating value for its shareholders.
Peer comparison
Dec 31, 2024