Clearwater Paper Corporation (CLW)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 107,700 | 84,200 | 68,200 | 53,200 | 46,000 | 61,400 | 42,700 | -23,600 | -28,100 | -15,000 | 4,500 | 78,900 | 77,100 | 56,500 | 24,100 | 900 | -5,600 | -195,372 | -149,928 | -142,567 |
| Total stockholders’ equity | US$ in thousands | 668,800 | 648,500 | 614,500 | 592,000 | 572,100 | 569,200 | 544,700 | 530,000 | 511,700 | 491,600 | 488,100 | 536,100 | 521,100 | 496,200 | 470,800 | 444,800 | 432,000 | 425,100 | 434,400 | 432,200 |
| ROE | 16.10% | 12.98% | 11.10% | 8.99% | 8.04% | 10.79% | 7.84% | -4.45% | -5.49% | -3.05% | 0.92% | 14.72% | 14.80% | 11.39% | 5.12% | 0.20% | -1.30% | -45.96% | -34.51% | -32.99% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $107,700K ÷ $668,800K
= 16.10%
Clearwater Paper Corp's return on equity (ROE) has shown a generally upward trend over the past eight quarters, with Q4 2023 reporting the highest ROE at 16.11%. This indicates that the company generated $16.11 in profit for every dollar of equity during that quarter. The consistent improvement in ROE reflects positively on Clearwater Paper Corp's ability to effectively utilize its equity to generate profits for shareholders.
The company's ROE was notably low in Q1 2022 at -4.45%, indicating a period of poor financial performance relative to the equity invested. However, Clearwater Paper Corp managed to significantly improve its ROE in subsequent quarters, reaching positive figures and even surpassing double-digit percentages.
Overall, the upward trend in ROE suggests that Clearwater Paper Corp has been successful in enhancing its profitability and efficiency in utilizing shareholder equity over the analyzed period. Maintaining a positive and increasing ROE is crucial for attracting investors and demonstrating sustainable growth and value creation.