Dover Corporation (DOV)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,697,130 | 1,056,830 | 1,065,380 | 1,123,820 | 683,451 |
| Total stockholders’ equity | US$ in thousands | 6,954,000 | 5,106,600 | 4,286,370 | 4,189,530 | 3,385,770 |
| ROE | 38.79% | 20.70% | 24.86% | 26.82% | 20.19% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,697,130K ÷ $6,954,000K
= 38.79%
The return on equity (ROE) for Dover Corporation has shown variability over the past five years. In 2020, the ROE was at 20.19%, indicating that for every dollar of equity invested, the company generated a return of 20.19%. The following year, the ROE increased to 26.82%, signifying improved efficiency in utilizing shareholder equity. In 2022, the ROE slightly declined to 24.86%, still reflecting a strong performance relative to the previous years.
However, the ROE dropped to 20.70% in 2023, indicating a decrease in profitability compared to the prior year. Nonetheless, in 2024, the ROE surged to 38.79%, reaching its highest level in the provided data series. This substantial increase suggests a significant improvement in Dover Corporation's ability to generate profits from the equity investments made by shareholders.
Overall, Dover Corporation's ROE has demonstrated fluctuations but generally shows a positive trend, with a notable increase in 2024. It is essential for investors and stakeholders to closely monitor these fluctuations in ROE to assess the company's performance and profitability over time.