ESAB Corp (ESAB)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 264,842 | 261,337 | 250,667 | 233,333 | 205,285 | 215,753 | 210,537 | 200,213 | 223,747 | 202,471 | 210,731 | 232,889 | 235,110 |
| Total stockholders’ equity | US$ in thousands | 1,769,000 | 1,837,120 | 1,707,970 | 1,640,800 | 1,607,400 | 1,500,810 | 1,506,310 | 1,419,580 | 1,350,210 | 1,209,180 | 1,241,860 | 2,476,850 | 2,460,740 |
| ROE | 14.97% | 14.23% | 14.68% | 14.22% | 12.77% | 14.38% | 13.98% | 14.10% | 16.57% | 16.74% | 16.97% | 9.40% | 9.55% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $264,842K ÷ $1,769,000K
= 14.97%
ESAB Corp's Return on Equity (ROE) has fluctuated over the past few years based on the provided data. From December 31, 2021, to September 30, 2022, the ROE showed a significant increase from 9.55% to 16.74%. This suggests an improvement in the company's ability to generate profit from shareholders' equity during this period.
However, there was a slight decline in ROE in the following quarters up to March 31, 2023, reaching 14.10%. Subsequently, the ROE continued to decrease, hitting its lowest point at 12.77% by December 31, 2023. This downward trend indicates a potential decrease in profitability relative to the shareholders' equity during these periods.
From March 31, 2024, to December 31, 2024, there was a modest recovery in ROE, reaching 14.97%. This improvement hints at a better utilization of equity to generate earnings.
Overall, it is important for ESAB Corp to monitor its ROE closely to ensure sustainable profitability and efficient use of shareholder funds. A consistent and ideally increasing ROE indicates that the company is effectively generating profit from the capital invested by shareholders.
Peer comparison
Dec 31, 2024