Fortrea Holdings Inc. (FTRE)
Return on equity (ROE)
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||
---|---|---|---|---|---|
Net income (ttm) | US$ in thousands | -328,500 | -303,300 | -289,400 | -120,200 |
Total stockholders’ equity | US$ in thousands | 1,362,400 | 1,513,500 | 1,461,100 | 1,591,900 |
ROE | -24.11% | -20.04% | -19.81% | -7.55% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-328,500K ÷ $1,362,400K
= -24.11%
Based on the data provided, Fortrea Holdings Inc.'s return on equity (ROE) has been on a declining trend over the year 2024. The ROE started at -7.55% in March 2024 and progressively deteriorated to -24.11% by December 2024.
A negative ROE indicates that the company is not generating profits from the shareholders' investments. In Fortrea Holdings Inc.'s case, the declining trend in ROE suggests that the company's profitability relative to its equity base has worsened throughout the year.
It is essential for the company to understand the reasons behind this downward trajectory in ROE and take corrective actions to improve profitability and efficiency in utilizing shareholder equity. Investors and stakeholders may be concerned about the company's ability to generate returns on the capital invested, based on this ROE performance. Further analysis of the company's financial statements and operations is warranted to uncover the root causes of the declining ROE and to develop a strategic plan for improvement.
Peer comparison
Dec 31, 2024