Dow Inc (DOW)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,116,000 | 589,000 | 4,582,000 | 6,311,000 | 1,225,000 |
| Total stockholders’ equity | US$ in thousands | 17,355,000 | 18,607,000 | 20,718,000 | 18,165,000 | 12,435,000 |
| ROE | 6.43% | 3.17% | 22.12% | 34.74% | 9.85% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,116,000K ÷ $17,355,000K
= 6.43%
Dow Inc's return on equity (ROE) has experienced fluctuations over the past five years. The ROE increased significantly from 2020 to 2021, jumping from 9.85% to 34.74%, indicating a substantial improvement in the company's profitability in 2021. However, in 2022, the ROE decreased to 22.12%, suggesting a slight decline in profitability compared to the previous year.
In 2023, there was a notable drop in ROE to 3.17%, signaling a significant decrease in the company's ability to generate profit from its shareholders' equity. This decline may raise concerns about the company's operational efficiency and utilization of its equity.
By the end of 2024, the ROE showed a slight recovery, increasing to 6.43%. Although the increase is positive, the ROE remains lower than the levels seen in 2021 and 2022, indicating that Dow Inc may still be facing challenges in optimizing its profitability and efficiently utilizing its equity.
Overall, Dow Inc's ROE trend suggests a mix of strong performance in 2021 followed by fluctuations and challenges in subsequent years, highlighting the importance of closely monitoring the company's financial performance and addressing any underlying issues affecting its profitability and efficiency.
Peer comparison
Dec 31, 2024