Verra Mobility Corp (VRRM)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	57,015	92,475	41,449	-4,578	17,076
Total stockholders’ equity	US$ in thousands	421,467	231,070	259,964	315,572	309,614
ROE		13.53%	40.02%	15.94%	-1.45%	5.52%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $57,015K ÷ $421,467K
= 13.53%

The return on equity (ROE) of Verra Mobility Corp has shown significant fluctuations over the past five years.

In 2019, the ROE was 9.83%, indicating a reasonable return generated from shareholders' equity. However, in 2020, the ROE turned negative at -1.45%, suggesting that the company experienced a loss on equity during that period, which could be a concerning situation for investors and stakeholders.

The ROE rebounded in 2021 to 15.94%, indicating an improvement in the company's ability to generate profit from shareholders' equity. This improvement continued in 2022, with a significant increase to 40.02%, reflecting a strong performance in utilizing equity to generate returns.

In 2023, the ROE decreased to 13.53%, which is still above the 2019 level but lower compared to the previous year. This decrease could be a sign of a slight dip in the company's profitability relative to shareholders' equity compared to the previous year.

Overall, while Verra Mobility Corp has shown variability in its ROE over the years, it is essential for investors and analysts to further investigate the factors contributing to these fluctuations to assess the company's financial health and performance accurately.