Verra Mobility Corp (VRRM)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	57,015	82,211	76,479	87,012	92,475	83,323	86,053	60,404	41,449	8,301	-7,919	-35,633	-4,578	19,951	26,617	53,930	25,810	-22,591	-33,830	-42,216
Total stockholders’ equity	US$ in thousands	421,467	404,056	465,300	237,108	231,070	194,891	244,223	275,815	259,964	243,666	316,425	308,518	315,572	325,722	309,150	330,134	309,614	327,591	309,828	304,821
ROE		13.53%	20.35%	16.44%	36.70%	40.02%	42.75%	35.24%	21.90%	15.94%	3.41%	-2.50%	-11.55%	-1.45%	6.13%	8.61%	16.34%	8.34%	-6.90%	-10.92%	-13.85%

December 31, 2023 calculation

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

Verra Mobility Corp's return on equity (ROE) has exhibited fluctuating trends over the past eight quarters. In Q1 2022, the ROE was strong at 21.90%, indicating that the company generated a respectable return for its shareholders relative to its equity base. However, the ROE then experienced a significant increase in Q2 and Q3 2022, reaching 35.24% and 42.75% respectively, reflecting a period of heightened profitability and efficiency in generating returns from shareholder equity.

The subsequent quarters, Q4 2022 and Q1 2023, saw the ROE continuing to increase, peaking at 40.02% in Q4 2022 and 36.70% in Q1 2023, signaling enhanced profitability and effective utilization of shareholder funds. However, in Q2 and Q3 2023, the ROE declined to 16.44% and 20.35% respectively, indicating a relative decrease in profitability and efficiency in generating returns on equity compared to the previous quarters.

Overall, Verra Mobility Corp's ROE has shown variability, with periods of robust performance followed by fluctuations. Further analysis and investigation into the factors influencing these fluctuations would be beneficial to gain a deeper understanding of the company's financial performance and sustainability.