Crown Holdings Inc (CCK)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 424,000 | 450,000 | 727,000 | -560,000 | 579,000 |
| Total stockholders’ equity | US$ in thousands | 2,756,000 | 2,410,000 | 1,849,000 | 1,912,000 | 2,198,000 |
| ROE | 15.38% | 18.67% | 39.32% | -29.29% | 26.34% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $424,000K ÷ $2,756,000K
= 15.38%
Based on the provided data for Crown Holdings Inc's return on equity (ROE) over the years, we observe fluctuations in the company's performance.
- In December 31, 2020, Crown Holdings Inc had a ROE of 26.34%, indicating that the company generated a profit of 26.34% on the equity shareholders invested in the business.
- However, by December 31, 2021, the ROE sharply declined to -29.29%, signifying that Crown Holdings Inc experienced a negative return on equity, implying that the company incurred a loss.
- The following year, December 31, 2022, saw a significant improvement in the ROE to 39.32%, suggesting that the company was able to generate a higher profit relative to the equity invested.
- Subsequently, in December 31, 2023, the ROE decreased to 18.67%, indicating a slight decrease in the return earned by the company on equity investment.
- By December 31, 2024, the ROE further decreased to 15.38%, showcasing a continued decline in the profitability of Crown Holdings Inc in generating returns for its equity investors.
Overall, the company's ROE has displayed volatility over the years, with notable fluctuations in profitability performance. It is essential for stakeholders to delve deeper into the reasons behind these fluctuations to assess the company's financial health comprehensively.
Peer comparison
Dec 31, 2024