Dow Inc (DOW)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,116,000 | 1,064,000 | 1,152,000 | 1,198,000 | 589,000 | 1,307,000 | 1,744,000 | 2,920,000 | 4,582,000 | 5,705,000 | 6,649,000 | 6,889,000 | 6,311,000 | 5,829,000 | 4,121,000 | 1,995,000 | 1,243,000 | -2,321,000 | -1,963,000 | -1,663,000 |
| Total stockholders’ equity | US$ in thousands | 17,355,000 | 18,311,000 | 18,318,000 | 18,425,000 | 18,607,000 | 19,567,000 | 19,997,000 | 20,181,000 | 20,718,000 | 18,117,000 | 18,973,000 | 18,880,000 | 18,165,000 | 16,439,000 | 15,573,000 | 14,003,000 | 12,435,000 | 12,354,000 | 12,537,000 | 12,906,000 |
| ROE | 6.43% | 5.81% | 6.29% | 6.50% | 3.17% | 6.68% | 8.72% | 14.47% | 22.12% | 31.49% | 35.04% | 36.49% | 34.74% | 35.46% | 26.46% | 14.25% | 10.00% | -18.79% | -15.66% | -12.89% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,116,000K ÷ $17,355,000K
= 6.43%
The return on equity (ROE) of Dow Inc has exhibited fluctuations over the past few years. Starting from negative values in early 2020, the ROE steadily improved and turned positive by the end of the same year.
From March 2021 onwards, the ROE showed a significant upward trend, reaching its peak in March 2022 at 36.49%. Subsequently, there was a gradual decline in ROE numbers, with intermittent slight increases. However, the overall trend remained positive until the end of 2024, with the ROE standing at 6.43%.
The positive ROE figures indicate that Dow Inc has been generating favorable returns for its shareholders in relation to the equity they have invested in the company. The increasing trend up to 2022 reflects improved profitability and efficiency in utilizing shareholder funds. Despite the slight fluctuations in the later periods, the company has continued to maintain a reasonable level of return on equity.
Overall, the ROE trend suggests that Dow Inc has been effective in generating profits from the equity capital contributed by its shareholders, although it is important to monitor any potential changes in the company's financial performance going forward.
Peer comparison
Dec 31, 2024