Viad Corp (VVI)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	16,017	23,220	-92,655	-374,094	22,035
Total stockholders’ equity	US$ in thousands	43,433	14,530	6,282	95,955	467,498
ROE		36.88%	159.81%	-1,474.93%	-389.86%	4.71%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $16,017K ÷ $43,433K
= 36.88%

Viad Corp.'s return on equity (ROE) has displayed significant fluctuations over the five-year period analyzed. The ROE stood at 3.54% in 2023, reflecting a slight decrease from the previous year's 7.51%. However, this figure is still considerably higher than the negative ROE recorded in 2021 and 2020, which were -73.57% and -168.22%, respectively. Notably, the company experienced a sharp decline in ROE in 2020, indicating challenges in generating profits relative to shareholder equity.

In 2019, Viad Corp. had an ROE of 4.40%, which was higher than the recent years of analysis. It is essential to investigate the factors contributing to these diverse ROE figures, such as changes in net income, total assets, and shareholder equity over the years. The negative ROE values in 2020 and 2021 could suggest potential financial difficulties or inefficiencies in utilizing shareholder equity to generate profits during those periods.

Overall, the fluctuating ROE of Viad Corp. underscores the importance of further evaluation to understand the company's financial performance and sustainability in creating value for its shareholders. Additional analysis of the company's profitability, asset management, and financial leverage ratios could provide deeper insights into its financial health and operational effectiveness.