Eastman Chemical Company (EMN)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 905,000 | 894,000 | 793,000 | 857,000 | 478,000 |
| Total stockholders’ equity | US$ in thousands | 5,779,000 | 5,458,000 | 5,153,000 | 5,704,000 | 6,023,000 |
| ROE | 15.66% | 16.38% | 15.39% | 15.02% | 7.94% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $905,000K ÷ $5,779,000K
= 15.66%
Eastman Chemical Company's return on equity (ROE) has shown a positive trend over the past five years. The ROE increased from 7.94% as of December 31, 2020, to 15.66% as of December 31, 2024. This indicates that the company has been effectively utilizing its equity to generate profits for shareholders.
The significant improvement in ROE suggests that Eastman Chemical Company has been successful in efficiently managing its assets and liabilities to generate higher returns for its equity holders. The steady upward trend in ROE reflects positively on the company's profitability and operational efficiency.
Overall, the consistent increase in ROE demonstrates Eastman Chemical Company's ability to deliver value to its shareholders by effectively leveraging their equity capital to generate profits.
Peer comparison
Dec 31, 2024