Willscot Mobile Mini Holdings Corp A (WSC)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 28,129 | 476,457 | 339,540 | 160,144 | 74,127 |
| Total stockholders’ equity | US$ in thousands | 1,018,590 | 1,261,250 | 1,565,300 | 1,996,760 | 2,141,280 |
| ROE | 2.76% | 37.78% | 21.69% | 8.02% | 3.46% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $28,129K ÷ $1,018,590K
= 2.76%
The return on equity (ROE) for Willscot Mobile Mini Holdings Corp A has exhibited significant fluctuations over the specified period. At the end of 2020, the ROE was 3.46%, indicating a relatively modest ability to generate profit from shareholders’ equity. In the subsequent year, this figure more than doubled to 8.02%, reflecting some improvement in operational efficiency or profitability relative to equity.
A substantial increase occurred by December 31, 2022, when the ROE reached 21.69%. This period likely corresponded with operational enhancements, strategic initiatives, or favorable market conditions that contributed to more effective utilization of shareholders’ equity to produce net income. The upward trend continued into 2023, with the ROE escalating to 37.78%, marking a peak within the observed timeframe. This substantial rise signals a period of strong profitability and efficient capital management, potentially driven by enhanced revenue streams, cost management, or market expansion.
However, by the end of 2024, the ROE sharply declined to 2.76%. This significant decrease suggests a deterioration in profitability relative to shareholders’ equity, possibly due to increased expenses, reduced net income, or strategic shifts that affected overall efficiency. The decline from the prior high indicates that the company faced challenges that impacted its ability to generate consistent returns for shareholders.
Overall, the trend demonstrates periods of rapid growth in ROE, highlighting phases of operational strength and strategic success, followed by a notable decline that complicates the assessment of sustained profitability. Continuous monitoring and analysis of underlying factors influencing net income and equity would be necessary to fully understand the drivers behind these fluctuations.