Corteva Inc (CTVA)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 735,000 | 1,147,000 | 1,759,000 | 681,000 | -959,000 |
| Total stockholders’ equity | US$ in thousands | 25,037,000 | 25,302,000 | 25,384,000 | 24,824,000 | 24,309,000 |
| ROE | 2.94% | 4.53% | 6.93% | 2.74% | -3.95% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $735,000K ÷ $25,037,000K
= 2.94%
Corteva Inc's return on equity (ROE) has displayed a fluctuating trend over the past five years. In 2023, the ROE stands at a modest 2.94%, showing a decline from the previous year's 4.53%. Despite this decrease, the company's ROE has generally been on a positive trajectory, with notable improvements from 2019's negative ROE of -3.95% to the latest figure.
While the 2023 ROE figure is lower than in 2022, it is higher than the ROE in 2020 and 2019, indicating some level of financial efficiency and profitability. However, the 2023 ROE of 2.94% suggests that the company may not be utilizing its shareholders' equity as effectively as in previous years. It is essential for Corteva Inc to assess the factors contributing to this decrease and work towards enhancing its return on equity to create value for its shareholders.
Overall, the trend in Corteva Inc's ROE highlights the importance of continuous monitoring and evaluation of the company's financial performance to ensure sustainable and profitable growth in the future.
Peer comparison
Dec 31, 2023