ArcBest Corp (ARCB)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 195,433 | 298,209 | 213,521 | 71,100 | 39,985 |
| Total stockholders’ equity | US$ in thousands | 1,242,360 | 1,151,400 | 929,067 | 828,593 | 763,043 |
| ROE | 15.73% | 25.90% | 22.98% | 8.58% | 5.24% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $195,433K ÷ $1,242,360K
= 15.73%
ArcBest Corp's return on equity (ROE) has exhibited variability over the past five years. The ROE decreased from 25.90% in 2022 to 15.73% in 2023, indicating a decline in the company's ability to generate profit from shareholders' equity. However, the 2023 ROE is still higher compared to the levels seen in 2020 and 2019.
In 2021, ArcBest Corp achieved an ROE of 22.98%, reflecting a strong performance in utilizing equity to generate profit. This was an improvement compared to the 8.58% ROE reported in 2020, suggesting enhanced efficiency in capital utilization.
Overall, ArcBest Corp's ROE has shown positive trends, with fluctuations across the years. The company's management may need to focus on sustaining or improving ROE levels to ensure efficient allocation of resources and continued profitability.
Peer comparison
Dec 31, 2023