Arch Resources Inc (ARCH)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 464,038 | 1,330,910 | 337,573 | -344,615 | 233,799 |
| Total stockholders’ equity | US$ in thousands | 1,479,460 | 1,365,580 | 683,866 | 283,561 | 640,536 |
| ROE | 31.37% | 97.46% | 49.36% | -121.53% | 36.50% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $464,038K ÷ $1,479,460K
= 31.37%
Arch Resources Inc's return on equity (ROE) fluctuated significantly over the past five years. In 2023, the ROE stood at 31.37%, which represents a decrease from the exceptionally high ROE of 97.46% in 2022. The ROE in 2021 was also strong at 49.36%. However, in 2020, the company experienced a negative ROE of -121.53%, indicating that the company's net income was not sufficient to cover its shareholder's equity. The ROE bounced back in 2019 to 36.50%.
Overall, the ROE trend indicates volatility in the company's profitability and efficiency in generating returns for its shareholders. It is crucial for investors and stakeholders to closely monitor the factors driving these fluctuations in ROE to assess the company's financial health and performance accurately.
Peer comparison
Dec 31, 2023