ArcBest Corp (ARCB)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 173,961 | 195,433 | 298,209 | 213,521 | 71,100 |
| Total stockholders’ equity | US$ in thousands | 1,314,360 | 1,242,360 | 1,151,400 | 929,067 | 828,593 |
| ROE | 13.24% | 15.73% | 25.90% | 22.98% | 8.58% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $173,961K ÷ $1,314,360K
= 13.24%
ArcBest Corp's return on equity (ROE) has shown significant fluctuations over the years.
In December 31, 2020, the ROE stood at 8.58%, indicating that for every dollar of shareholders' equity, the company generated a profit of 8.58 cents. The ROE then experienced a substantial increase to 22.98% by December 31, 2021, signaling improved profitability and efficiency in the utilization of equity.
The trend continued to rise, reaching 25.90% by December 31, 2022, demonstrating a strong performance in generating returns for shareholders. However, there was a decline in ROE to 15.73% by December 31, 2023, suggesting a reduction in profitability or efficiency in that period.
By December 31, 2024, the ROE decreased further to 13.24%, indicating a continued downward trend in the return on equity. This decline may be due to various factors such as increased expenses, lower net income, or changes in the capital structure.
Overall, ArcBest Corp's ROE has shown both positive and negative swings over the years, reflecting changes in the company's ability to generate profits from shareholders' equity. Investors and analysts should closely monitor these fluctuations to assess the company's financial health and operational performance.
Peer comparison
Dec 31, 2024