CNH Industrial N.V. (CNH)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,371,000 | 2,029,000 | 1,723,000 | -493,000 | 1,422,000 |
| Total stockholders’ equity | US$ in thousands | 8,234,000 | 6,976,000 | 6,853,000 | 5,029,000 | 6,156,000 |
| ROE | 28.80% | 29.09% | 25.14% | -9.80% | 23.10% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,371,000K ÷ $8,234,000K
= 28.80%
CNH Industrial N.V.'s return on equity (ROE) has shown variability over the past five years. In 2023, the ROE was 28.80%, slightly lower than the previous year's 29.09%. Despite this decrease, the company continues to generate strong returns for its shareholders. The ROE in 2021 was 25.14%, indicating solid performance compared to 2020 when the ROE was negative, standing at -9.80%. This negative result in 2020 could be attributed to challenges faced by the company during that period. However, CNH Industrial N.V. managed to rebound in 2021 and maintained a healthy ROE. The ROE in 2019 was 23.10%, highlighting the company's ability to deliver attractive returns to its investors over the years. Overall, despite some fluctuations, CNH Industrial N.V. has generally demonstrated a strong ability to generate profits relative to its shareholders' equity.
Peer comparison
Dec 31, 2023