Eastman Chemical Company (EMN)
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 | 905,000 | 885,000 | 883,000 | 925,000 | 894,000 | 586,000 | 709,000 | 693,000 | 794,000 | 1,170,000 | 1,220,000 | 818,000 | 857,000 | 511,000 | 321,000 | 494,000 | 478,000 | 472,000 | 577,000 | 808,000 |
| Total stockholders’ equity | US$ in thousands | 5,779,000 | 5,654,000 | 5,627,000 | 5,538,000 | 5,458,000 | 5,352,000 | 5,281,000 | 5,188,000 | 5,153,000 | 5,384,000 | 5,323,000 | 5,893,000 | 5,704,000 | 6,120,000 | 5,944,000 | 6,233,000 | 6,023,000 | 6,075,000 | 6,021,000 | 6,117,000 |
| ROE | 15.66% | 15.65% | 15.69% | 16.70% | 16.38% | 10.95% | 13.43% | 13.36% | 15.41% | 21.73% | 22.92% | 13.88% | 15.02% | 8.35% | 5.40% | 7.93% | 7.94% | 7.77% | 9.58% | 13.21% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $905,000K ÷ $5,779,000K
= 15.66%
The return on equity (ROE) of Eastman Chemical Company has shown fluctuating trends over the periods indicated in the data.
Beginning in March 2020 at 13.21%, the ROE declined to 9.58% by June 2020, suggesting a decrease in the company's profitability relative to its shareholders' equity. Subsequently, the ROE continued to decrease, reaching a low of 5.40% in June 2021, indicating potential challenges in generating returns for shareholders.
However, starting from September 2021, the ROE began to recover, showing an upward trend and reaching a peak of 22.92% in June 2022. This significant improvement in profitability could be attributed to operational efficiencies, strategic decisions, or market conditions favoring the company.
Subsequently, the ROE stabilized around the range of 15-16% from March 2023 to December 2024, demonstrating a consistent performance in generating returns for shareholders during this period.
Overall, the fluctuation in Eastman Chemical Company's ROE suggests varying levels of profitability and efficiency in utilizing shareholders' equity over the analyzed period. Investors and analysts may further investigate the factors influencing these fluctuations to assess the company's financial performance comprehensively.
Peer comparison
Dec 31, 2024