Smith AO Corporation (AOS)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 533,600 | 556,600 | 235,700 | 487,100 | 344,900 |
| Total stockholders’ equity | US$ in thousands | 1,883,500 | 1,844,400 | 1,747,700 | 1,832,200 | 1,848,300 |
| ROE | 28.33% | 30.18% | 13.49% | 26.59% | 18.66% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $533,600K ÷ $1,883,500K
= 28.33%
Smith AO Corporation's return on equity (ROE) has shown fluctuating trends over the past five years.
In December 2020, the ROE was reported at 18.66%, reflecting a decent profitability level. Subsequently, in December 2021, the ROE increased significantly to 26.59%, indicating improved efficiency in generating profits relative to shareholders' equity.
However, in December 2022, there was a notable decline in ROE to 13.49%, signaling a decrease in the company's profitability relative to its equity base.
The trend reversed in December 2023, with the ROE bouncing back to 30.18%, surpassing the previous high in 2021. This sharp increase indicates a strong recovery in the company's profitability and efficient use of shareholder funds.
By December 2024, the ROE remains strong at 28.33%, reflecting continued profitability and efficient utilization of equity to generate returns for shareholders.
Overall, Smith AO Corporation's ROE has displayed varied performance over the years, with periods of both growth and decline. It is essential for stakeholders to monitor these fluctuations closely to understand the company's ability to generate profits from shareholders' investments.
Peer comparison
Dec 31, 2024