Balchem Corporation (BCPC)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 108,543 | 103,301 | 99,475 | 99,147 | 105,367 | 108,910 | 108,674 | 101,623 | 96,104 | 93,317 | 89,872 | 88,266 | 84,623 | 82,844 | 81,952 | 80,656 | 79,671 | 79,622 | 78,160 | 78,010 |
| Total stockholders’ equity | US$ in thousands | 1,053,980 | 1,025,270 | 1,006,900 | 973,416 | 938,284 | 895,922 | 901,370 | 873,682 | 877,015 | 889,078 | 869,642 | 849,492 | 828,233 | 819,443 | 792,523 | 766,271 | 743,667 | 733,586 | 732,345 | 710,509 |
| ROE | 10.30% | 10.08% | 9.88% | 10.19% | 11.23% | 12.16% | 12.06% | 11.63% | 10.96% | 10.50% | 10.33% | 10.39% | 10.22% | 10.11% | 10.34% | 10.53% | 10.71% | 10.85% | 10.67% | 10.98% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $108,543K ÷ $1,053,980K
= 10.30%
Balchem Corp.'s return on equity (ROE) has shown a gradual decline over the past few quarters, starting at 11.63% in Q1 2022 and dropping to 10.30% in Q4 2023. This indicates a decreasing trend in the company's ability to generate profits from shareholders' equity.
While the ROE figures have fluctuated slightly between 9.88% and 12.16% during this period, the overall trend suggests a slight decrease in profitability relative to the equity investment in the company. A declining ROE could be a concern for investors, as it may indicate inefficiencies in the utilization of company resources or challenges in generating sustainable returns on equity.
It is important for Balchem Corp. to closely monitor and address the factors contributing to the decline in ROE, such as increasing expenses, declining revenues, or deteriorating asset quality. Management should consider strategic initiatives to improve operational efficiency, enhance profitability, and ultimately boost the company's return on equity to create value for its shareholders.
Peer comparison
Dec 31, 2023