Dana Inc (DAN)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -57,000 | 38,000 | -315,000 | 197,000 | -71,000 |
| Total stockholders’ equity | US$ in thousands | 1,333,000 | 1,575,000 | 1,551,000 | 1,922,000 | 1,758,000 |
| ROE | -4.28% | 2.41% | -20.31% | 10.25% | -4.04% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-57,000K ÷ $1,333,000K
= -4.28%
Analyzing Dana Inc's Return on Equity (ROE) over the five-year period from 2020 to 2024 reveals varying performance levels.
In December 2020, Dana Inc reported a negative ROE of -4.04%, indicating that the company's net income was not sufficient to generate an adequate return for its shareholders. However, there was a significant improvement in ROE in 2021, with a positive ROE of 10.25%, suggesting a better utilization of equity to generate profits.
The performance deteriorated in 2022, with ROE dropping to -20.31%, signaling a poor return on equity and potential challenges in generating profits relative to the equity invested. However, there was a modest recovery in 2023, as the ROE increased to 2.41%, indicating a slight improvement in the company's profitability.
The trend reversed in 2024, with a negative ROE of -4.28%, suggesting a decline in profitability and potential operational inefficiencies impacting the company's ability to generate returns for its shareholders.
Overall, the fluctuating ROE of Dana Inc over the years reflects varying levels of profitability and efficiency in utilizing shareholder equity. It is essential for the company to focus on improving operational performance and profitability to enhance its return on equity in the future.
Peer comparison
Dec 31, 2024