CVR Energy Inc (CVI)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 769,000 | 463,000 | 25,000 | -256,000 | 380,000 |
| Total stockholders’ equity | US$ in thousands | 847,000 | 531,000 | 553,000 | 1,019,000 | 1,393,000 |
| ROE | 90.79% | 87.19% | 4.52% | -25.12% | 27.28% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $769,000K ÷ $847,000K
= 90.79%
CVR Energy Inc's return on equity (ROE) has shown significant fluctuations over the past five years. In 2023, the ROE reached 90.79%, marking a notable increase from the previous year's 87.19%. This suggests that the company was able to generate a higher level of net income relative to its shareholders' equity in 2023.
The substantial improvement in ROE from 2022 to 2023 indicates that CVR Energy Inc effectively utilized its equity to generate profits or efficiency in managing its assets. However, it is essential to note the considerable volatility in ROE over the years, with a sharp increase in 2023 following a relatively low ROE of 4.52% in 2021 and a negative ROE of -25.12% in 2020.
Overall, the varying ROE figures for CVR Energy Inc show fluctuations in the company's profitability and efficiency in utilizing shareholders' equity to generate earnings. This may indicate changes in the company's operating performance, financial leverage, or efficiency in deploying its capital over the years.
Peer comparison
Dec 31, 2023