Flowserve Corporation (FLS)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 186,743 | 188,689 | 125,949 | 130,420 | 238,828 |
| Total stockholders’ equity | US$ in thousands | 1,936,100 | 1,824,990 | 1,804,320 | 1,730,990 | 1,746,740 |
| ROE | 9.65% | 10.34% | 6.98% | 7.53% | 13.67% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $186,743K ÷ $1,936,100K
= 9.65%
Flowserve Corp.'s return on equity (ROE) has displayed fluctuations over the past five years. In 2023, the ROE stood at 9.65%, a decrease from the previous year's 10.34%. Despite the decrease, the 2023 ROE remains relatively stable compared to the figures in 2020 and 2021, which were 6.71% and 6.98%, respectively. The highest ROE in the given period was recorded in 2019 at 14.17%.
The variability in ROE over the years may indicate changes in the company's profitability and efficiency in generating returns for its shareholders. The downward trend from 2019 to 2021 could suggest challenges or fluctuations in the company's financial performance during those years. However, the slight increase in ROE in 2022 followed by a decrease in 2023 shows some level of volatility in the company's ability to generate profits relative to its equity.
Further analysis, such as examining the components of ROE (net profit margin, asset turnover, and financial leverage), would provide deeper insights into the factors driving these changes in Flowserve Corp.'s ROE.
Peer comparison
Dec 31, 2023