CVR Energy Inc (CVI)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 7,000 | 769,000 | 463,000 | 25,000 | -256,000 |
| Total stockholders’ equity | US$ in thousands | 703,000 | 847,000 | 531,000 | 553,000 | 1,019,000 |
| ROE | 1.00% | 90.79% | 87.19% | 4.52% | -25.12% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $7,000K ÷ $703,000K
= 1.00%
Based on the provided data, CVR Energy Inc's return on equity (ROE) has shown significant fluctuations over the years. In 2020, the company reported a negative ROE of -25.12%, indicating that the company's net income was insufficient to cover shareholder equity, which could be a cause for concern.
However, there has been a notable improvement in CVR Energy Inc's ROE performance in subsequent years. In 2021, the ROE increased to 4.52%, suggesting that the company started generating positive returns on equity. This improvement continued in 2022, with the ROE surging to 87.19%, indicating a substantial increase in profitability and efficiency in utilizing shareholders' equity.
The trend of increasing ROE persisted in 2023, reaching a notable high of 90.79%. This exceptional ROE value indicates that the company was able to generate significant profits relative to the shareholders' equity invested during that year. However, it is essential to assess the sustainability of such a high ROE level and whether it is driven by strong financial performance or other factors.
In 2024, CVR Energy Inc experienced a decrease in ROE to 1.00%, signifying a decline in profitability compared to the previous year. This drop could be a result of various factors, such as changes in the company's financial structure, management decisions, or external market conditions.
Overall, the analysis of CVR Energy Inc's ROE reveals a mixed performance, with significant fluctuations in profitability levels over the years. Investors and stakeholders should closely monitor the company's financial health and performance metrics to assess its overall long-term sustainability and growth prospects.
Peer comparison
Dec 31, 2024