Astec Industries Inc (ASTE)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,300 | 33,500 | -600 | 15,800 | 46,000 |
| Total stockholders’ equity | US$ in thousands | 637,600 | 653,400 | 626,900 | 654,800 | 643,000 |
| ROE | 0.67% | 5.13% | -0.10% | 2.41% | 7.15% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $4,300K ÷ $637,600K
= 0.67%
Based on the data provided for Astec Industries Inc, the return on equity (ROE) has shown a fluctuating trend over the past five years. The ROE was at 7.15% on December 31, 2020, indicating that for every dollar of shareholders' equity invested, the company generated a return of 7.15%.
However, there was a significant decrease in ROE to 2.41% by December 31, 2021, suggesting a decline in the company's profitability or efficiency in utilizing shareholders' equity to generate earnings.
Subsequently, the ROE turned negative, reaching -0.10% by December 31, 2022, indicating that the company was experiencing a period where its net income was insufficient to cover the shareholders' equity invested in the business.
By December 31, 2023, the ROE improved to 5.13%, reflecting a better performance in generating profits from shareholders' equity. However, the ROE decreased again to 0.67% by December 31, 2024, which could indicate potential challenges in maintaining profitability levels.
Overall, the fluctuating trend in Astec Industries Inc's ROE over the past five years suggests varying levels of profitability and efficiency in utilizing shareholders' equity to generate earnings. Further analysis of the company's financial performance and operational strategies may be necessary to understand the factors influencing these ROE fluctuations.
Peer comparison
Dec 31, 2024