CF Industries Holdings Inc (CF)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,525,000 | 3,346,000 | 917,000 | 317,000 | 493,000 |
| Total stockholders’ equity | US$ in thousands | 5,717,000 | 5,051,000 | 3,206,000 | 2,922,000 | 2,897,000 |
| ROE | 26.67% | 66.24% | 28.60% | 10.85% | 17.02% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,525,000K ÷ $5,717,000K
= 26.67%
CF Industries Holdings Inc's return on equity (ROE) has shown fluctuations over the past five years. In 2023, the ROE stands at 26.67%, reflecting a decline from the previous year's exceptionally high ROE of 66.24%. The significant drop in ROE from 2022 to 2023 suggests a decrease in the company's profitability and efficiency in generating returns for shareholders from their equity investments.
Compared to 2021 and 2020, where the ROE was 28.60% and 10.85%, respectively, the 2023 figure falls within this range but closer to the lower end. This indicates relative stability when viewed over the past three years, with a minor improvement in ROE in 2023 compared to 2020.
However, it is noteworthy that the ROE in 2023 is lower than the 2019 figure of 17.02%, indicating a longer-term decline from that year. This suggests that CF Industries Holdings Inc may have faced challenges in enhancing shareholder value through its equity during this period.
Overall, the trend in CF Industries Holdings Inc's ROE highlights the importance of monitoring financial performance consistently to identify factors influencing shareholder returns and to implement strategies to improve ROE in the future.
Peer comparison
Dec 31, 2023