AMC Networks Inc (AMCX)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 215,464 | 7,594 | 250,596 | 239,979 | 380,486 |
| Total stockholders’ equity | US$ in thousands | 1,048,050 | 806,988 | 851,088 | 616,805 | 665,781 |
| ROE | 20.56% | 0.94% | 29.44% | 38.91% | 57.15% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $215,464K ÷ $1,048,050K
= 20.56%
AMC Networks Inc's return on equity (ROE) has shown fluctuations over the past five years. The ROE for the year ending December 31, 2023, stood at 20.56%, representing a significant improvement compared to the previous year's ROE of 0.94%. This increase indicates a better utilization of the company's equity to generate profits for shareholders in 2023.
Compared to the ROE of 29.44% in 2021, the current ROE of 20.56% suggests a slight decline in the profitability and efficiency of the company in utilizing its equity. The downward trend in ROE from 2021 to 2023 may raise concerns among investors about the company's ability to generate returns on their investments.
However, it is important to note that the ROE has experienced notable fluctuations over the past five years, with a sharp decline from 57.15% in 2019 to 38.91% in 2020, followed by varying levels in the subsequent years. These fluctuations could be attributed to changes in the company's financial performance, capital structure, or operational efficiency.
Overall, although the recent ROE of 20.56% for AMC Networks Inc indicates a positive improvement from the previous year, investors and stakeholders may monitor future financial reports to assess the company's ability to sustain and potentially increase its return on equity in the long term.
Peer comparison
Dec 31, 2023