Element Solutions Inc (ESI)
Return on equity (ROE)
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 286,200 | 244,200 | 266,600 | 194,500 | 131,200 | 118,100 | 53,700 | 138,700 | 174,000 | 187,200 | 178,400 | 161,200 | 177,100 | 203,300 | 229,300 | 229,300 | 149,400 | 75,700 | 120,200 | 77,300 |
| Total stockholders’ equity | US$ in thousands | 2,519,800 | 2,383,000 | 2,439,300 | 2,373,100 | 2,323,700 | 2,328,500 | 2,230,200 | 2,303,500 | 2,354,700 | 2,332,500 | 2,288,100 | 2,398,200 | 2,494,900 | 2,480,700 | 2,479,600 | 2,470,000 | 2,349,500 | 2,319,800 | 2,244,600 | 2,156,800 |
| ROE | 11.36% | 10.25% | 10.93% | 8.20% | 5.65% | 5.07% | 2.41% | 6.02% | 7.39% | 8.03% | 7.80% | 6.72% | 7.10% | 8.20% | 9.25% | 9.28% | 6.36% | 3.26% | 5.36% | 3.58% |
March 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $286,200K ÷ $2,519,800K
= 11.36%
The analysis of Element Solutions Inc.'s return on equity (ROE) over the period from June 2020 to March 2025 reveals notable fluctuations and trends. Starting at a modest 3.58% in June 2020, the ROE experienced a steady upward trajectory through mid-2021, peaking at approximately 9.28% in June 2021 and remaining relatively stable during the subsequent quarters, with values around 8% to 9%. This period indicates a period of improving profitability and efficient utilization of shareholders' equity, likely driven by favorable operational performance and possibly strategic initiatives.
From late 2021 onward, the ROE demonstrated some volatility. It declined gradually from a high of 8.20% at the end of 2021 to about 6.72% in June 2022, followed by a modest recovery to nearly 7.80% in September 2022 and a slight stabilization around 8% into late 2022. Early 2023 saw a slight decline to 7.39% before decreasing further to 6.02% in June 2023. The decline during this period could indicate increased challenges or capital investments that affected profitability relative to equity.
A significant downward spike occurred in September 2023, with the ROE dropping sharply to just 2.41%. This suggests a potential operational or financial setback impacting profitability or perhaps increased equity without corresponding earnings growth. Subsequently, the ROE showed signs of recovery, rising to 5.07% in December 2023 and further improving to 5.65% in March 2024.
The most recent data points reflect a positive upward trend: 8.20% in June 2024, followed by a notable increase to 10.93% in September 2024, and then slightly tapering to 10.25% in December 2024, with the latest figure recorded at 11.36% in March 2025. These increases indicate a renewed period of profitability efficiency and effective management of shareholders’ equity, possibly driven by operational improvements or favorable market conditions.
Overall, the ROE trend for Element Solutions Inc. demonstrates periods of growth, stabilization, and recent recovery, with the latest figures suggesting a regained and potentially strengthening profitability outlook.
Peer comparison
Mar 31, 2025