Comstock Resources Inc (CRK)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	211,117	1,124,870	-241,725	-52,417	96,889
Total stockholders’ equity	US$ in thousands	2,358,410	2,278,310	1,012,780	1,266,770	1,143,020
ROE		8.95%	49.37%	-23.87%	-4.14%	8.48%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $211,117K ÷ $2,358,410K
= 8.95%

Comstock Resources, Inc.'s return on equity (ROE) has varied significantly over the past five years. In 2023, the ROE stood at 8.98%, representing a substantial decrease from the previous year's figure of 49.37% in 2022. The considerable drop in ROE may indicate challenges in generating profits relative to shareholders' equity.

The negative ROE of -21.82% in 2021 suggests that the company's net income was insufficient to cover shareholder investments, resulting in an unprofitable year for equity holders. However, there was a slight improvement in 2020, with an ROE of -5.79%, indicating a potential effort towards recovering profitability.

The positive ROE of 4.89% in 2019 followed a period of negative returns and may signify a return to a more favorable financial performance. It is essential to consider the company's overall financial health, efficiency in utilizing equity capital, and profitability trends to gain a more comprehensive understanding of the factors influencing Comstock Resources, Inc.'s ROE dynamics over the years.