Crown Holdings Inc (CCK)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 450,000 | 727,000 | -560,000 | 579,000 | 510,000 |
| Total stockholders’ equity | US$ in thousands | 2,410,000 | 1,849,000 | 1,912,000 | 2,198,000 | 1,713,000 |
| ROE | 18.67% | 39.32% | -29.29% | 26.34% | 29.77% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $450,000K ÷ $2,410,000K
= 18.67%
Crown Holdings, Inc.'s return on equity (ROE) has exhibited significant fluctuations over the past five years. In 2023, the ROE stood at 18.67%, reflecting a decrease from the previous year's robust performance of 39.32%. The negative ROE of -29.29% in 2021 is concerning and suggests that the company was not generating adequate returns for its shareholders during that period.
However, the company showed improvement in 2022 and 2023 compared to the difficult year of 2021. The ROE of 26.34% in 2020 and 29.77% in 2019 indicates that the company was more profitable and efficient in utilizing shareholders' equity to generate profits during those years.
Overall, the fluctuating trend in Crown Holdings, Inc.'s ROE over the past five years indicates the company's varying ability to generate profits from shareholders' equity. Further analysis of the company's financial performance and operational strategies would be necessary to understand the factors contributing to these fluctuations and assess the company's future growth prospects.
Peer comparison
Dec 31, 2023