CF Industries Holdings Inc (CF)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,218,000 | 1,525,000 | 3,346,000 | 1,260,000 | 432,000 |
| Total stockholders’ equity | US$ in thousands | 4,985,000 | 5,717,000 | 5,051,000 | 3,206,000 | 2,922,000 |
| ROE | 24.43% | 26.67% | 66.24% | 39.30% | 14.78% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,218,000K ÷ $4,985,000K
= 24.43%
Based on the provided data, CF Industries Holdings Inc has experienced significant fluctuations in its Return on Equity (ROE) over the past five years. In December 31, 2020, the ROE was reported at 14.78%, indicating the company generated a moderate return for its equity investors.
The following year, in December 31, 2021, the ROE substantially increased to 39.30%, signifying a notable improvement in the company's ability to generate profit from its shareholders' equity.
The trend continued in December 31, 2022, where the ROE surged to 66.24%, reaching its peak during this period. This exceptional performance reflected a robust profitability level relative to the shareholders' equity invested in the company.
However, in December 31, 2023, there was a significant drop in ROE to 26.67%, indicating a decrease in the company's profitability efficiency compared to the previous year.
By the end of December 31, 2024, the ROE further declined to 24.43%, suggesting a continued trend of reduced profitability relative to the shareholders' equity. It is essential for CF Industries Holdings Inc to assess the factors contributing to these fluctuations in ROE and implement appropriate strategies to sustain improved profitability levels in the future.
Peer comparison
Dec 31, 2024