Fluor Corporation (FLR)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 139,000 | 145,000 | -440,000 | -435,000 | -1,522,160 |
| Total stockholders’ equity | US$ in thousands | 1,940,000 | 1,786,000 | 1,393,000 | 1,030,250 | 1,487,750 |
| ROE | 7.16% | 8.12% | -31.59% | -42.22% | -102.31% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $139,000K ÷ $1,940,000K
= 7.16%
Fluor Corporation's Return on Equity (ROE) has displayed a fluctuating trend over the past five years. The company's ROE was 4.28% in 2023, a slight decrease from the 5.94% reported in 2022. However, compared to the substantial negative ROE figures in 2021 (-31.61%), 2020 (-42.23%), and 2019 (-102.31%), the recent improvement is noteworthy.
The negative ROE in 2021, 2020, and 2019 may indicate that Fluor Corporation was not generating sufficient profits relative to the shareholders' equity during those years. This could be a result of various factors such as high expenses, declining revenues, or inefficient utilization of assets. The significant improvement in 2023 suggests that the company may have undertaken strategic initiatives to enhance profitability and efficiency.
It is important for stakeholders to monitor Fluor Corporation's ROE consistently to assess its ability to generate profits from shareholder investments. Further analysis and comparison with industry peers may provide additional insights into the company's financial performance and competitiveness.
Peer comparison
Dec 31, 2023