FMC Corporation (FMC)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,321,500 | 736,500 | 739,600 | 552,400 | 477,400 |
| Total stockholders’ equity | US$ in thousands | 4,410,900 | 3,377,900 | 3,124,300 | 2,961,800 | 2,532,300 |
| ROE | 29.96% | 21.80% | 23.67% | 18.65% | 18.85% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,321,500K ÷ $4,410,900K
= 29.96%
FMC Corp.'s Return on Equity (ROE) has shown a positive trend over the past five years, increasing from 18.79% in 2019 to 29.90% in 2023. This signifies that the company is generating higher returns for its shareholders relative to the equity invested in the business.
The significant improvement in ROE from 2022 to 2023, from 21.75% to 29.90%, suggests that FMC Corp. has been effectively utilizing its equity to generate profits.
Overall, the increasing trend in ROE indicates that FMC Corp. has been successful in efficiently deploying its resources to maximize shareholder value and generate returns above the cost of equity capital. It also suggests that the company's financial performance and profitability have been improving over the years, which is a positive signal for investors and stakeholders.
Peer comparison
Dec 31, 2023