Amphenol Corporation (APH)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,928,000 | 1,902,300 | 1,590,800 | 1,203,400 | 1,155,000 |
| Total stockholders’ equity | US$ in thousands | 8,346,500 | 7,015,600 | 6,302,000 | 5,384,900 | 4,530,300 |
| ROE | 23.10% | 27.12% | 25.24% | 22.35% | 25.50% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,928,000K ÷ $8,346,500K
= 23.10%
Amphenol Corp.'s return on equity (ROE) has displayed variability over the past five years. In 2023, the ROE stood at 23.10%, showing a decline from the previous year's figure of 27.12%. This decrease suggests a potential decrease in the company's ability to generate profits from its shareholders' equity.
Looking at the trend over the five-year period, Amphenol Corp.'s ROE has generally been at a moderate to high level, with the highest point observed in 2022 at 27.12% and the lowest in 2020 at 22.35%. This indicates that the company has historically been efficient in using its equity to generate earnings for its shareholders.
However, the slight fluctuations in ROE over the years may indicate varying levels of profitability and efficiency in utilizing equity capital. It is essential for stakeholders to continue monitoring this metric to assess the company's performance and its ability to generate returns on the shareholders' investment.