Peabody Energy Corp (BTU)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 370,900 | 759,600 | 1,297,100 | 360,100 | -1,859,800 |
| Total stockholders’ equity | US$ in thousands | 3,650,500 | 3,547,000 | 3,231,300 | 1,761,800 | 929,600 |
| ROE | 10.16% | 21.42% | 40.14% | 20.44% | -200.06% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $370,900K ÷ $3,650,500K
= 10.16%
Peabody Energy Corp's return on equity (ROE) has displayed significant fluctuations over the past five years. The ROE was notably negative at -200.06% as of December 31, 2020, indicating the company incurred losses that exceeded its equity. However, the company saw a remarkable turnaround in the subsequent years, with ROE increasing to 20.44% by December 31, 2021, and further improving to 40.14% by December 31, 2022. This upward trend suggests that Peabody Energy Corp effectively utilized its equity to generate profits during this period.
Although the ROE dipped slightly to 21.42% by December 31, 2023, it remained at a relatively healthy level, demonstrating the company's ongoing ability to generate returns for its equity holders. By December 31, 2024, the ROE decreased to 10.16%, indicating a decline in profitability compared to the previous year.
Overall, Peabody Energy Corp's ROE performance reflects a volatile but ultimately positive trend, with the company transitioning from significant losses to strong returns on equity in the subsequent years. It is important for stakeholders to monitor future ROE trends to assess the company's financial health and efficiency in utilizing its equity capital effectively.
Peer comparison
Dec 31, 2024