AdvanSix Inc (ASIX)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 44,149 | 54,623 | 171,886 | 139,791 | 46,077 |
| Total stockholders’ equity | US$ in thousands | 774,650 | 739,237 | 738,180 | 601,190 | 444,123 |
| ROE | 5.70% | 7.39% | 23.29% | 23.25% | 10.37% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $44,149K ÷ $774,650K
= 5.70%
AdvanSix Inc's return on equity (ROE) has experienced fluctuations over the past few years. The ROE increased significantly from 10.37% on December 31, 2020, to 23.25% on December 31, 2021, and further improved to 23.29% on December 31, 2022. This suggests that the company was effectively utilizing shareholder equity to generate profit during these years.
However, the ROE dropped notably to 7.39% on December 31, 2023, indicating a decrease in profitability relative to shareholder equity. The downward trend continued as the ROE further declined to 5.70% on December 31, 2024. This downward trend might raise concerns about the company's efficiency in generating returns for its shareholders.
In conclusion, while AdvanSix Inc demonstrated strong ROE performance in the initial years of the period analyzed, the declining trend towards the latter years suggests the need for further analysis to identify the factors influencing the company's profitability and shareholder return in recent years.
Peer comparison
Dec 31, 2024