T. Rowe Price(TROW) - 2024 Q4 - Annual Report

Financial Performance - Net revenues for 2024 were $7,093.6 million, a 9.8% increase from$ 6,460.5 million in 2023[308]. - Net income attributable to T. Rowe Price Group, Inc. rose to $2,100.1 million in 2024, compared to$ 1,788.7 million in 2023, reflecting a growth of 17.4%[308]. - Earnings per share (EPS) on common stock increased to $9.18 in 2024, up from$ 7.78 in 2023, marking a 17.9% increase[308]. - Total comprehensive income attributable to T. Rowe Price Group, Inc. was $2,095.9 million in 2024, compared to$ 1,794.2 million in 2023, indicating a growth of 16.8%[310]. - Net income for 2024 increased to $2,135.8 million, up from$ 1,835.7 million in 2023, representing a growth of 16.4%[312]. - Total stockholders' equity increased to $9,505.1 million as of December 31, 2023, compared to$ 9,030.2 million at the end of 2022, indicating a rise of 5.2%[313]. - Dividends paid to common stock and equity-award holders amounted to $1,135.6 million in 2024, slightly up from$ 1,121.7 million in 2023[312]. - The company reported a net gain on investments of $363.2 million in 2024, slightly up from$ 355.2 million in 2023[308]. - The company experienced a net change in cash and cash equivalents of $569.1 million during the year, compared to$ 269.1 million in 2023, an increase of 111.2%[312]. Assets and Investments - Total assets increased to $13,472.0 million as of December 31, 2024, up from$ 12,278.8 million in 2023, representing an increase of 9.7%[306]. - Cash and cash equivalents increased to $2,649.8 million in 2024, compared to$ 2,066.6 million in 2023, a rise of 28.2%[306]. - The fair value of investments held at fair value totaled $3,770.9 million in 2024, compared to$ 2,937.8 million in 2023[393]. - The total assets of consolidated investment products increased from $1,959.3 million in 2023 to$ 2,044.0 million in 2024, with investments rising from $1,847.0 million to$ 1,936.2 million[400]. - Cash equivalent investments in T. Rowe Price money market mutual funds totaled $2,309.8 million as of December 31, 2024, up from$ 1,678.1 million in 2023, with dividends earned of $128.3 million in 2024[378]. Investment Advisory Fees - Total investment advisory fees increased to$ 6,399.7 million in 2024, up 12.1% from $5,709.5 million in 2023[380]. - Investment advisory fees are influenced by the total value and composition of assets under management, which are subject to market fluctuations[319]. - Performance-based investment advisory fees are recognized when returns exceed the stated hurdle, leading to potential variability in revenue recognition[39]. - The company plans to report performance-based advisory fees separately in the income statement starting in 2024 for increased transparency[320]. Employee and Operational Metrics - As of December 31, 2024, T. Rowe Price employed 8,158 associates, reflecting a 3.2% increase from 7,906 associates at the end of 2023[55]. - The company has closed certain strategies to new investors, which represent about 7% of total assets under management as of December 31, 2024[31]. - The company is subject to net capital requirements and has met or exceeded all minimum requirements as of December 31, 2024[50]. - The weighted-average remaining lease term for the company's leases is approximately 10.2 years, with a discount rate of 3.4%[409]. Regulatory and Compliance - The company is subject to extensive regulations that could impact its operations and compliance obligations, including cybersecurity and climate-related disclosures[44]. - T. Rowe Price's subsidiaries providing transfer agent services are registered under the Securities Exchange Act of 1934, ensuring compliance with regulatory standards[48]. Market Competition - The company faces significant competition from passive investment strategies, which have taken market share from active managers[52]. Capital Management - The company repurchased common stock worth$ 337.2 million in 2024, compared to $254.4 million in 2023, an increase of 32.5%[312]. - The Board of Directors authorized the repurchase of up to 18,377,353 common shares as of December 31, 2024[427]. Taxation - The provision for income taxes totaled$ 683.8 million in 2024, up from $654.6 million in 2023, with current U.S. federal taxes amounting to$ 634.7 million[417]. - The effective income tax rate for 2024 was 24.3%, a decrease from 26.3% in 2023[418]. Goodwill and Intangible Assets - Goodwill remained stable at $2,642.8 million for both 2024 and 2023, while total intangible assets decreased from$ 3,150.1 million in 2023 to $3,010.9 million in 2024[413]. - The company evaluates goodwill for possible impairment annually in the fourth quarter, with evaluations indicating no impairment exists[352].