Verra Mobility Corp (VRRM)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 31,448 57,015 92,475 41,449 -3,445
Total stockholders’ equity US$ in thousands 265,125 421,467 231,070 259,964 346,438
ROE 11.86% 13.53% 40.02% 15.94% -0.99%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $31,448K ÷ $265,125K
= 11.86%

Verra Mobility Corp's return on equity (ROE) has shown a significant improvement over the years based on the provided data.

In December 2020, the company's ROE was negative at -0.99%, indicating that its net income was insufficient to cover the shareholders' equity. However, by the end of December 2021, the ROE had increased substantially to 15.94%, reflecting a positive turnaround in its profitability and efficiency in generating returns for shareholders.

By December 2022, Verra Mobility Corp's ROE surged even further to 40.02%, demonstrating a significant improvement in the company's profitability and effectiveness in utilizing its equity to generate earnings. This sharp rise in ROE suggests that the company was able to maximize shareholder value through its operations and investments.

Although there was a slight decrease in ROE to 13.53% by December 2023 and a further decline to 11.86% by December 2024, the company still maintained healthy returns on its equity during these periods. These fluctuations might be attributed to various factors such as changes in the company's financial structure, profitability, or asset utilization efficiency.

Overall, Verra Mobility Corp's ROE trend indicates a positive trajectory in terms of its ability to generate returns for shareholders and efficiently utilize equity capital. Investors and stakeholders may view the company's improving ROE as a sign of enhanced financial performance and potential growth opportunities.