Agilent Technologies Inc (A)
Return on equity (ROE)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,240,000 | 1,254,000 | 1,210,000 | 719,000 | 1,071,000 |
| Total stockholders’ equity | US$ in thousands | 5,845,000 | 5,305,000 | 5,389,000 | 4,873,000 | 4,748,000 |
| ROE | 21.21% | 23.64% | 22.45% | 14.75% | 22.56% |
October 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,240,000K ÷ $5,845,000K
= 21.21%
Agilent Technologies Inc.'s return on equity (ROE) indicates its efficiency in generating profits from shareholders' equity. The trend in ROE over the past five years reveals fluctuations, starting at 22.56% in 2019, dipping to 14.75% in 2020, and then increasing to 22.45% in 2021, followed by 23.64% in 2022, and finally settling at 21.21% in 2023.
The decline in ROE in 2020 may raise concerns, indicating a potential inefficiency in utilizing equity to generate profits. However, the subsequent recovery in 2021 along with the high ROEs in 2022 and 2023 suggests improved profitability and a return to a more favorable performance.
Overall, Agilent Technologies Inc.'s ROE demonstrates variability but has generally remained at satisfactory levels, indicating the company's ability to generate returns on the invested equity.
Peer comparison
Oct 31, 2023