Belden Inc (BDC)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 242,759 | 254,663 | 63,925 | -55,162 | -377,015 |
| Total stockholders’ equity | US$ in thousands | 1,166,260 | 1,143,010 | 955,287 | 750,581 | 959,847 |
| ROE | 20.82% | 22.28% | 6.69% | -7.35% | -39.28% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $242,759K ÷ $1,166,260K
= 20.82%
Based on the data provided, Belden Inc's Return on Equity (ROE) has shown mixed performance over the past five years. The ROE increased from -41.20% in 2019 to 20.82% in 2023, indicating a significant turnaround in the company's profitability and efficiency in generating returns for shareholders.
However, it is important to note that there was a dip in ROE in 2021 to 6.69% compared to the previous year's 22.28%. This could be a cause for concern as it signifies a decrease in the company's ability to utilize shareholder equity to generate profits.
Overall, the upward trend in ROE from 2019 to 2023 reflects an improvement in Belden Inc's financial performance and efficiency in utilizing shareholder funds to generate profits. This signals a positive trajectory for the company, but it's essential for investors and stakeholders to monitor future ROE trends to ensure sustained profitability and value creation.
Peer comparison
Dec 31, 2023