Dow Inc (DOW)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | -1,346,000 | |||
| Total stockholders’ equity | US$ in thousands | 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 | 13,541,000 | 17,399,000 | 17,911,000 | 32,668,000 |
| ROE | 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% | -9.94% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $589,000K ÷ $18,607,000K
= 3.17%
To analyze Dow Inc's return on equity (ROE) over the given periods, we can observe a significant fluctuation in the ROE. The ROE decreased from 36.49% in March 2022 to 3.17% in December 2023. This may indicate a decrease in the company's profitability and efficiency in generating returns for shareholders' equity during this period.
The downward trend in the ROE could be attributed to various factors such as changes in the company's net income, equity levels, or the introduction of new debt or equity financing. The sharp decline in ROE signals a potential decline in the company's ability to generate profits from the shareholders' equity invested.
It is crucial for investors and analysts to further investigate the reasons behind this fluctuation in ROE and understand the company's financial performance, capital structure, and operational efficiencies over the periods in question. This analysis will provide additional insights into the company's financial health and its ability to create value for its shareholders.
Peer comparison
Dec 31, 2023