The Andersons Inc (ANDE)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 114,012 | 101,190 | 131,080 | 103,986 | 7,710 |
| Total stockholders’ equity | US$ in thousands | 1,366,190 | 1,282,900 | 1,198,600 | 1,072,420 | 961,891 |
| ROE | 8.35% | 7.89% | 10.94% | 9.70% | 0.80% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $114,012K ÷ $1,366,190K
= 8.35%
The return on equity (ROE) for The Andersons Inc has shown some fluctuations over the past few years. In 2020, the ROE was quite low at 0.80%, indicating that the company was not effectively utilizing its equity to generate profits. However, in subsequent years, there was a notable improvement in ROE. By the end of 2021, the ROE had risen to 9.70%, indicating a significant increase in profitability relative to the equity invested.
The trend continued in 2022, with the ROE further increasing to 10.94%, suggesting that the company was becoming more efficient in generating profits from its equity. However, in 2023, there was a slight dip in the ROE to 7.89%, indicating a temporary decrease in profitability relative to the equity base.
By the end of 2024, the ROE had recovered slightly to 8.35%, showing a moderate improvement compared to the previous year. Overall, the company's ROE trend indicates a mix of positive and negative movements in profitability relative to shareholders' equity over the years, with efforts needed to maintain and enhance profitability levels in the future.
Peer comparison
Dec 31, 2024