Veralto Corporation (VLTO)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 833,000 | 806,000 | 792,000 |
| Total stockholders’ equity | US$ in thousands | 2,038,000 | 1,954,000 | 1,666,000 |
| ROE | 40.87% | 41.25% | 47.54% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $833,000K ÷ $2,038,000K
= 40.87%
The return on equity (ROE) of Veralto Corporation has shown a positive trend over the period specified. In June 30, 2024, the ROE stood at 47.54%, indicating that for every dollar of shareholders' equity, the company generated a profit of 47.54 cents. This was followed by a slight decrease to 41.25% in September 30, 2024, before stabilizing at 40.87% by December 31, 2024.
The consistently high ROE values suggest that the company is effectively utilizing its shareholders' equity to generate profits. However, the slight decrease in the later periods may indicate a potential slowdown in the efficiency of turning equity into profit.
It is essential for Veralto Corporation to assess the factors contributing to this trend and consider strategies to maintain or improve their ROE in the future, ensuring sustainable growth and maximizing shareholder value.
Peer comparison
Dec 31, 2024