Astec Industries Inc (ASTE)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 33,500 | -100 | 15,800 | 46,000 | 22,300 |
| Total stockholders’ equity | US$ in thousands | 653,400 | 626,900 | 650,800 | 642,500 | 601,900 |
| ROE | 5.13% | -0.02% | 2.43% | 7.16% | 3.70% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $33,500K ÷ $653,400K
= 5.13%
The return on equity (ROE) for Astec Industries Inc. has fluctuated over the past five years. In 2023, the ROE stood at 5.13%, showing an improvement from the negative ROE of -0.02% in 2022. However, the ROE in 2023 was still lower than the levels seen in 2020 and 2019, which were 7.30% and 3.71% respectively. The ROE in 2021 was moderate at 2.72%.
The positive ROE in 2023 indicates that the company generated a profit relative to its shareholder's equity, although the rate of return was relatively lower compared to previous years. It suggests that the company's management is effectively utilizing shareholder funds to generate profits but may need to further enhance efficiency to achieve higher returns for the shareholders.
Overall, the trend in Astec Industries Inc.'s ROE reflects some variability in the company's ability to generate returns on equity over the analyzed period.
Peer comparison
Dec 31, 2023