Ziff Davis Inc (ZD)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 41,503 | 63,757 | 496,714 | 150,668 | 218,806 |
| Total stockholders’ equity | US$ in thousands | 1,893,000 | 1,892,610 | 1,967,730 | 1,211,020 | 1,311,190 |
| ROE | 2.19% | 3.37% | 25.24% | 12.44% | 16.69% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $41,503K ÷ $1,893,000K
= 2.19%
The return on equity (ROE) for Ziff Davis Inc has shown fluctuating trends over the past five years. In 2023, the ROE decreased to 2.19%, down from 3.37% in 2022. This decline may indicate a decrease in the company's ability to generate profits from its shareholders' equity.
Comparing to the highest reported ROE of 25.23% in 2021, the recent ROE figures show a significant decrease. The 2023 ROE of 2.19% is substantially lower than the 2021 figure, suggesting a material decline in the company's profitability and efficiency in utilizing shareholder funds.
Similarly, the ROE in 2023 is lower than the ROE figures for 2020 and 2019, which were 12.39% and 16.42% respectively. This downward trend in ROE over the past two years may indicate potential issues with the company's overall performance and effectiveness in generating returns for its shareholders.
It is essential for investors and stakeholders to closely monitor the company's financial performance and seek further insights into the factors contributing to the declining ROE in order to assess the company's long-term sustainability and profitability.