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