Dow Inc (DOW)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 589,000 | 4,582,000 | 6,311,000 | 1,225,000 | -1,359,000 |
| Total stockholders’ equity | US$ in thousands | 18,607,000 | 20,718,000 | 18,165,000 | 12,435,000 | 13,541,000 |
| ROE | 3.17% | 22.12% | 34.74% | 9.85% | -10.04% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $589,000K ÷ $18,607,000K
= 3.17%
Dow Inc's return on equity (ROE) has shown considerable variability over the past five years. The ROE decreased significantly from 34.74% in 2021 to 9.85% in 2020, indicating a significant decline in the company's ability to generate profits from shareholders' equity. However, in 2022, there was a notable improvement as the ROE increased to 22.12%, but it dropped considerably to 3.17% in 2023. This fluctuation suggests that the company's efficiency in utilizing shareholders' equity to generate profits has been inconsistent. The negative ROE of -10.04% in 2019 highlights a period of unprofitability and inefficiency in utilizing equity during that year. Overall, the fluctuating ROE indicates that Dow Inc's profitability and efficiency in generating returns from shareholders' equity have been volatile and warrant further investigation.
Peer comparison
Dec 31, 2023