Olympic Steel Inc (ZEUS)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 44,529 | 41,080 | 40,896 | 63,501 | 90,931 | 121,051 | 153,538 | 145,563 | 130,269 | 97,976 | 51,923 | 15,820 | -5,595 | -8,271 | -6,160 | 2,375 | 3,856 | 3,430 | 14,438 | 28,205 |
| Total stockholders’ equity | US$ in thousands | 555,478 | 549,321 | 538,463 | 524,551 | 515,968 | 512,655 | 499,559 | 462,786 | 424,439 | 512,655 | 353,820 | 323,775 | 424,439 | 298,835 | 299,938 | 306,392 | 308,352 | 308,648 | 308,463 | 309,200 |
| ROE | 8.02% | 7.48% | 7.59% | 12.11% | 17.62% | 23.61% | 30.73% | 31.45% | 30.69% | 19.11% | 14.67% | 4.89% | -1.32% | -2.77% | -2.05% | 0.78% | 1.25% | 1.11% | 4.68% | 9.12% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $44,529K ÷ $555,478K
= 8.02%
Olympic Steel Inc.'s Return on Equity (ROE) has exhibited some fluctuations in the recent quarters. The ROE dropped from 17.62% in Q4 2022 to 8.02% in Q4 2023, indicating a significant decrease in profitability and efficiency in utilizing shareholder equity. The downward trend continued into Q3 and Q2 2023 with ROE values of 7.48% and 7.59%, respectively.
The peak ROE was observed in Q1 and Q2 2022, reaching 28.89% and 29.46%, respectively. These high ROE values suggest strong profitability and effective utilization of shareholders' equity during that period. However, the ROE has declined steadily since then.
Overall, the downward trend in ROE over the past quarters may signal potential challenges in generating profits relative to the company's equity base. Further analysis of the company's financial performance and strategic decisions is recommended to understand the factors contributing to the fluctuations in ROE and identify areas for improvement.
Peer comparison
Dec 31, 2023