Eastman Chemical Company (EMN)

Return on equity (ROE)

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income US$ in thousands 894,000 793,000 857,000 478,000 759,000
Total stockholders’ equity US$ in thousands 5,458,000 5,153,000 5,704,000 6,023,000 5,958,000
ROE 16.38% 15.39% 15.02% 7.94% 12.74%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $894,000K ÷ $5,458,000K
= 16.38%

Eastman Chemical Co's return on equity (ROE) has shown a positive trend over the past five years. In 2023, the ROE increased to 16.38%, up from 15.39% in 2022 and 15.02% in 2021. This upward trajectory indicates improved efficiency in utilizing shareholder equity to generate profits.

Comparing the current ROE to previous years, there was a significant jump from 7.94% in 2020 to 16.38% in 2023. This substantial increase suggests that Eastman Chemical Co has been able to enhance its profitability and efficiency in utilizing equity capital over the past three years.

Although the ROE dipped slightly in 2019 to 12.74%, the overall trend in the recent years showcases an improvement in the company's ability to generate returns for its shareholders. This positive trend in ROE indicates effective management of assets and liabilities by the company, resulting in increased profitability and value creation for investors.


Peer comparison

Dec 31, 2023