Amphenol Corporation (APH)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,424,000 | 1,928,000 | 1,902,300 | 1,590,800 | 1,203,400 |
| Total stockholders’ equity | US$ in thousands | 9,792,000 | 8,346,500 | 7,015,600 | 6,302,000 | 5,384,900 |
| ROE | 24.75% | 23.10% | 27.12% | 25.24% | 22.35% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,424,000K ÷ $9,792,000K
= 24.75%
Amphenol Corporation has shown a positive trend in its return on equity (ROE) over the period from December 31, 2020, to December 31, 2024. The ROE increased from 22.35% in 2020 to 24.75% in 2024. This indicates that the company has been effectively utilizing shareholders' equity to generate profits and create value for its investors. The upward trend in ROE suggests that Amphenol has been improving its operational efficiency and profitability over the years. However, there was a slight decrease in ROE in 2023 compared to 2022, but the company managed to bounce back and achieve a higher ROE in 2024. Overall, the increasing trend in ROE reflects positively on Amphenol's financial performance and management's ability to generate returns for shareholders.