Corteva Inc (CTVA)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 907,000 | 735,000 | 1,147,000 | 1,759,000 | 681,000 |
| Total stockholders’ equity | US$ in thousands | 23,789,000 | 25,037,000 | 25,302,000 | 25,384,000 | 24,824,000 |
| ROE | 3.81% | 2.94% | 4.53% | 6.93% | 2.74% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $907,000K ÷ $23,789,000K
= 3.81%
Based on the provided data, Corteva Inc's return on equity (ROE) has fluctuated over the years. As of December 31, 2020, the ROE stood at a modest 2.74%, indicating that the company was generating $2.74 in net income for every $100 of shareholder equity.
Over the next few years, the ROE showed some improvement, reaching 6.93% by December 31, 2021. This significant increase suggests that Corteva was becoming more efficient in utilizing shareholder funds to generate profits.
However, in the following years, the ROE dipped slightly to 4.53% by December 31, 2022, then further decreased to 2.94% by December 31, 2023. This decline could indicate challenges in maintaining profitability relative to the level of equity investment.
By December 31, 2024, the ROE had slightly rebounded to 3.81%. Although still below the peak in 2021, this uptick shows a potential recovery in profitability efficiency.
In conclusion, while Corteva Inc has experienced fluctuations in its ROE over the years, investors and analysts should continue to monitor the company's performance to assess its ability to generate returns on shareholder equity effectively.
Peer comparison
Dec 31, 2024