Fortune Brands Innovations Inc. (FBIN)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 404,500 | 432,800 | 500,500 | 590,400 | 686,700 | 752,400 | 750,300 | 775,500 | 772,400 | 760,700 | 723,200 | 621,800 | 553,100 | 493,600 | 434,600 | 456,300 | 431,900 | 413,000 | 407,200 | 399,300 |
| Total stockholders’ equity | US$ in thousands | 2,293,400 | 2,219,000 | 2,177,100 | 2,082,500 | 2,086,900 | 3,030,100 | 2,952,400 | 2,914,800 | 3,064,800 | 3,054,600 | 3,043,500 | 2,924,400 | 2,775,500 | 2,628,600 | 2,461,800 | 2,357,000 | 2,426,600 | 2,335,400 | 2,343,500 | 2,245,500 |
| ROE | 17.64% | 19.50% | 22.99% | 28.35% | 32.91% | 24.83% | 25.41% | 26.61% | 25.20% | 24.90% | 23.76% | 21.26% | 19.93% | 18.78% | 17.65% | 19.36% | 17.80% | 17.68% | 17.38% | 17.78% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $404,500K ÷ $2,293,400K
= 17.64%
Fortune Brands Innovations Inc.'s return on equity (ROE) has shown fluctuations over the past five years, ranging from 17.64% to 32.91%. The ROE peaked at 32.91% in December 2022, indicating that the company generated $32.91 in net income for every dollar of shareholder equity. However, the ROE has been on a downward trend since then, reaching 17.64% in December 2023.
The declining trend in ROE from 2022 to 2023 could suggest challenges in generating profits relative to the equity invested by shareholders. It is essential for the company to assess its operational efficiency, profitability, and financial leverage to improve ROE and create value for shareholders.
Overall, while Fortune Brands Innovations Inc. has demonstrated varying levels of return on equity in recent periods, there is a need for sustained efforts to enhance profitability and efficiency to drive ROE higher in the future.
Peer comparison
Dec 31, 2023