Element Solutions Inc (ESI)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 244,200 | 118,100 | 187,200 | 203,300 | 75,700 |
| Total stockholders’ equity | US$ in thousands | 2,383,000 | 2,328,500 | 2,332,500 | 2,480,700 | 2,319,800 |
| ROE | 10.25% | 5.07% | 8.03% | 8.20% | 3.26% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $244,200K ÷ $2,383,000K
= 10.25%
The analysis of Element Solutions Inc's return on equity (ROE) over the period from December 31, 2020, to December 31, 2024, indicates notable fluctuations with some upward and downward trends. In 2020, the ROE stood at 3.26%, reflecting relatively modest profitability relative to shareholders' equity during that year. This figure increased significantly in 2021 to 8.20%, more than doubling the prior year's return, suggesting a substantial improvement in net profitability generated from shareholders’ equity.
In 2022, the ROE experienced a slight decline to 8.03%, indicating a stabilization of profitability levels, although still remaining at a substantially higher level compared to 2020. The subsequent year, 2023, saw a decrease to 5.07%, which could reflect either a reduction in net income, an increase in shareholders’ equity, or a combination of both factors; this downturn suggests some deterioration in efficiency or profitability relative to equity.
However, in 2024, the ROE rebounded markedly to 10.25%, surpassing all prior years within this period. This increase may signify a recovery in net earnings, improved operational efficiencies, or strategic financial management resulting in enhanced shareholder returns.
Overall, the ROE trend illustrates a pattern of significant growth from 2020 through 2021, relative stability in 2022, a decline in 2023, and a notable rebound in 2024. The fluctuations point to a dynamic profitability environment that has experienced periods of both improvement and setback, culminating in a strong performance at the end of 2024 as measured by ROE.
Peer comparison
Dec 31, 2024