Celsius Holdings Inc (CELH)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 226,801 | -187,282 | 3,937 | 8,524 | 9,971 |
| Total stockholders’ equity | US$ in thousands | 264,040 | 40,091 | 217,046 | 104,327 | 63,459 |
| ROE | 85.90% | -467.14% | 1.81% | 8.17% | 15.71% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $226,801K ÷ $264,040K
= 85.90%
Celsius Holdings Inc's return on equity (ROE) has displayed significant fluctuations over the past five years. In 2023, the company achieved a robust ROE of 68.93%, indicating that for every dollar of shareholder equity, the company generated a profit of 68.93 cents. This represents a substantial improvement from the negative ROE of -22.99% in 2022, which suggests that the company incurred a loss relative to its equity base in that year.
The relatively low ROE of 1.81% in 2021 indicates that the company's profitability in relation to shareholders' equity was modest during that period. The ROE then increased to 8.17% in 2020, indicating an improvement in the company's ability to generate profit from its equity base compared to the previous year.
The highest ROE in the past five years was recorded in 2019 at 15.71%, signifying a strong profitability performance relative to the shareholders' equity at that time. Overall, the fluctuating trend in ROE suggests variability in the company's profitability and efficiency in utilizing its equity to generate earnings for shareholders. It would be important for stakeholders to further investigate the factors driving these fluctuations to gain a deeper understanding of the company's financial performance.
Peer comparison
Dec 31, 2023