CNH Industrial N.V. (CNH)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,246,000 | 2,275,000 | 2,029,000 | 1,723,000 | -493,000 |
| Total stockholders’ equity | US$ in thousands | 7,651,000 | 8,030,000 | 6,927,000 | 6,778,000 | 4,907,000 |
| ROE | 16.29% | 28.33% | 29.29% | 25.42% | -10.05% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,246,000K ÷ $7,651,000K
= 16.29%
The return on equity (ROE) of CNH Industrial N.V. has shown significant fluctuations over the years. Beginning at -10.05% on December 31, 2020, the ROE improved markedly to 25.42% by December 31, 2021. This positive trend continued as the ROE further increased to 29.29% by December 31, 2022, and then remained relatively stable at 28.33% by the end of December 31, 2023. However, there was a slight dip in ROE to 16.29% by December 31, 2024.
Overall, the company witnessed a strong recovery in ROE from negative to double-digit positive percentages, signaling improved profitability and utilization of shareholders' equity to generate earnings. The successive increase in ROE from 2020 to 2023 demonstrates effective management of assets and efficient capital allocation. Nevertheless, the slight decline in ROE in 2024 suggests potential challenges in sustaining the initial momentum. Further analysis of the company's financial performance and strategic decisions would be needed to understand the factors influencing these fluctuations in ROE.
Peer comparison
Dec 31, 2024