Balchem Corporation (BCPC)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 108,543 | 105,367 | 96,104 | 84,623 | 79,671 |
| Total stockholders’ equity | US$ in thousands | 1,053,980 | 938,284 | 877,015 | 828,233 | 743,667 |
| ROE | 10.30% | 11.23% | 10.96% | 10.22% | 10.71% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $108,543K ÷ $1,053,980K
= 10.30%
Balchem Corp.'s return on equity (ROE) has displayed a relatively stable trend over the past five years, ranging from 10.22% in 2020 to 11.23% in 2022. The ROE for the latest period ending on December 31, 2023, stands at 10.30%. This indicates that for every dollar of shareholders' equity, the company generated a return of 10.30% in the most recent fiscal year.
ROE is a key profitability ratio that shows how efficiently a company is utilizing its equity to generate profits. While Balchem Corp.'s ROE has been fluctuating slightly year over year, the overall performance suggests that the company is effectively leveraging its equity to generate profits for its shareholders. Maintaining a double-digit ROE signifies that the company is creating value for its equity holders and is managing its assets and liabilities efficiently.
It is important for investors and analysts to continue monitoring Balchem Corp.'s ROE along with other financial metrics to assess the company's financial health and performance over time.
Peer comparison
Dec 31, 2023