Cactus Inc (WHD)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 169,171 | 110,174 | 49,593 | 34,446 | 85,612 |
| Total stockholders’ equity | US$ in thousands | 865,522 | 571,917 | 468,644 | 352,970 | 327,466 |
| ROE | 19.55% | 19.26% | 10.58% | 9.76% | 26.14% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $169,171K ÷ $865,522K
= 19.55%
The return on equity (ROE) for Cactus Inc has shown varying trends over the past five years. In 2019, the ROE was relatively high at 26.14%, indicating that the company generated a strong return for its shareholders relative to its equity base. However, in 2020 and 2021, the ROE decreased to 9.76% and 10.58% respectively, suggesting a decline in the company's ability to efficiently generate profits from its equity.
The ROE improved in 2022 and 2023 to 19.26% and 19.55% respectively, showcasing a positive trend in the company's profitability and efficiency in utilizing its equity to generate returns. This improvement indicates that Cactus Inc has made efforts to enhance its operational performance and profitability, potentially through better cost management, revenue growth, or asset utilization.
Overall, Cactus Inc's ROE performance has shown both strengths and weaknesses over the past five years, but the recent improvement in ROE suggests that the company may be on a positive trajectory in terms of generating returns for its shareholders. Further analysis of the financial statements and underlying factors driving the ROE would provide additional insight into the company's financial health and performance.
Peer comparison
Dec 31, 2023