Frontier Communications Parent Inc (FYBR)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -322,000 | 29,000 | 441,000 | 4,955,000 | -402,000 |
| Total stockholders’ equity | US$ in thousands | 2,524,000 | 5,279,000 | 5,134,000 | 4,600,000 | -4,900,000 |
| ROE | -12.76% | 0.55% | 8.59% | 107.72% | — |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-322,000K ÷ $2,524,000K
= -12.76%
Frontier Communications Parent Inc's return on equity (ROE) fluctuated significantly over the period analyzed. In December 2020, the ROE was not provided. However, it surged to 107.72% by December 2021, indicating that the company generated a substantial profit relative to its shareholders' equity.
In the following years, the ROE experienced a downward trend. By December 2022, the ROE decreased to 8.59%, signifying a reduction in the company's efficiency in utilizing shareholder funds to generate earnings. Subsequently, in December 2023, the ROE further declined to 0.55%, implying a minimal return being generated on equity.
The most concerning observation is in December 2024, where the ROE turned negative to -12.76%. This negative ROE suggests the company is operating at a loss and is not effectively generating profits relative to the shareholder's equity.
In conclusion, Frontier Communications Parent Inc's ROE performance over the period shows a initially strong performance in 2021 followed by a significant decline, raising concerns about the company's financial health and its ability to generate returns for its shareholders.
Peer comparison
Dec 31, 2024