Peabody Energy Corp (BTU)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 759,600 | 1,297,100 | 360,100 | -1,870,300 | -211,300 |
| Total stockholders’ equity | US$ in thousands | 3,547,000 | 3,231,300 | 1,761,800 | 929,600 | 2,613,800 |
| ROE | 21.42% | 40.14% | 20.44% | -201.19% | -8.08% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $759,600K ÷ $3,547,000K
= 21.42%
The Return on Equity (ROE) of Peabody Energy Corp has varied significantly over the past five years. In 2023, the ROE stood at 21.42%, indicating that for every dollar of equity invested in the company, it generated a return of 21.42 cents. This represents a decrease from the previous year's ROE of 40.14%, suggesting a decline in profitability and efficiency in utilizing shareholder equity.
The substantial drop in ROE from 2022 to 2023 might raise concerns among investors and stakeholders regarding Peabody Energy's ability to generate returns on their investments. It is essential for the company to assess and address the factors contributing to this decline to improve its financial performance and return to a positive growth trajectory.
Looking back at the trend over the last five years, Peabody Energy experienced a significant negative ROE of -201.19% in 2020, followed by a negative ROE of -8.08% in 2019. These negative ROE figures indicate that the company incurred losses that exceeded the equity invested during those years, reflecting financial distress and poor financial management.
Overall, the fluctuating ROE of Peabody Energy Corp highlights the importance of monitoring and analyzing financial performance metrics to assess the company's profitability, efficiency, and financial health. Investors and stakeholders should closely follow any changes in ROE to gauge the company's ability to generate returns on shareholder equity and sustain long-term growth.
Peer comparison
Dec 31, 2023