Balchem Corporation (BCPC)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 128,475 108,543 105,367 96,104 84,623
Total stockholders’ equity US$ in thousands 1,149,910 1,053,980 938,284 877,015 828,233
ROE 11.17% 10.30% 11.23% 10.96% 10.22%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $128,475K ÷ $1,149,910K
= 11.17%

The return on equity (ROE) of Balchem Corporation has shown a gradual improvement over the past five years. Starting at 10.22% as of December 31, 2020, the ROE increased slightly to 10.96% by the end of 2021. Subsequently, there was a further uptick in ROE to 11.23% by December 31, 2022. However, there was a slight dip in ROE to 10.30% by the end of 2023 before rebounding to 11.17% by December 31, 2024.

Overall, the trend suggests that Balchem Corporation has been effectively utilizing its equity to generate returns for its shareholders, with fluctuations in ROE potentially reflecting changes in the company's profitability, financial leverage, or both. The consistent positive ROE figures indicate the company's ability to generate profits relative to shareholder equity, which is a positive indicator of financial performance and efficiency.