Advanced Energy Industries Inc (AEIS)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 54,214 | 128,284 | 199,660 | 134,736 | 134,675 |
| Total stockholders’ equity | US$ in thousands | 1,203,170 | 1,144,180 | 1,066,270 | 870,851 | 814,739 |
| ROE | 4.51% | 11.21% | 18.73% | 15.47% | 16.53% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $54,214K ÷ $1,203,170K
= 4.51%
Advanced Energy Industries Inc's return on equity (ROE) has shown fluctuations over the past five years. The ROE was at a relatively healthy level of 16.53% at the end of 2020. However, there was a slight decrease in ROE to 15.47% by the end of 2021. The company managed to improve its ROE significantly in 2022, reaching 18.73%.
Unfortunately, the trend reversed in 2023, with a significant drop in ROE to 11.21%. This decline could be a cause for concern as it indicates a lower return on the shareholders' equity. The situation worsened further in 2024, with the ROE plummeting to 4.51%, which is a steep decline from the previous year.
Overall, the erratic performance of ROE over the years suggests that Advanced Energy Industries Inc may need to address efficiency and profitability issues to enhance shareholder value and ensure sustainable growth in the future.
Peer comparison
Dec 31, 2024