Ziff Davis Inc (ZD)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 63,047 | 41,503 | 63,757 | 496,714 | 150,668 |
| Total stockholders’ equity | US$ in thousands | 1,810,880 | 1,893,000 | 1,892,610 | 1,967,730 | 1,211,020 |
| ROE | 3.48% | 2.19% | 3.37% | 25.24% | 12.44% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $63,047K ÷ $1,810,880K
= 3.48%
The return on equity (ROE) of Ziff Davis Inc has shown variability over the past five years. In December 2020, the ROE stood at 12.44%, indicating that for every dollar of shareholders' equity, the company generated a profit of 12.44 cents.
There was a significant increase in ROE in December 2021, reaching 25.24%, reflecting a more efficient utilization of equity to generate profits. However, this high ROE was not sustained, as evidenced by the sharp decline to 3.37% in December 2022, indicating a potential decrease in profitability relative to the shareholders' investment.
The downward trend continued in December 2023 with an ROE of 2.19%, suggesting potential challenges in generating profits relative to the level of equity investment. The ROE experienced a slight improvement in December 2024, rising to 3.48%, but it remains relatively low compared to previous years.
Overall, the fluctuating ROE of Ziff Davis Inc reflects varying levels of profitability and efficiency in utilizing shareholders' equity over the past five years, raising potential concerns about the company's performance and financial management.