Avient Corp (AVNT)
Return on equity (ROE)
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Net income | US$ in thousands | 75,700 | 703,100 | 230,800 | 131,600 | 588,600 |
Total stockholders’ equity | US$ in thousands | 2,319,200 | 2,334,500 | 1,774,700 | 1,697,100 | 1,051,900 |
ROE | 3.26% | 30.12% | 13.01% | 7.75% | 55.96% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $75,700K ÷ $2,319,200K
= 3.26%
Avient Corp's return on equity (ROE) has displayed significant fluctuations over the past five years. The ROE stood at 3.26% at the end of 2023, a notable decrease from the prior year. The drop in ROE from 2022 to 2023 might indicate that the company's profitability and efficiency in generating returns for shareholders declined during this period.
Comparing to 2021, the 2023 ROE also indicates a moderate decrease, suggesting a potential weakening in the company's ability to utilize shareholder equity to generate profits. Nevertheless, it's worth noting that the 2023 ROE was higher than the levels in 2020 and 2019, indicating at least some level of improvement in shareholder value creation compared to those years.
Overall, the downward trend in ROE from 2022 to 2023 may raise concerns about Avient Corp's operational performance and the effectiveness of its use of equity capital. Further analysis of the company's financial statements and operations would be warranted to identify underlying reasons for the changes in ROE and to assess the company's future prospects for generating returns for its shareholders.
Peer comparison
Dec 31, 2023