Corning Incorporated (GLW)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 506,000 | 581,000 | 1,316,000 | 1,906,000 | 512,000 |
| Total stockholders’ equity | US$ in thousands | 10,686,000 | 11,551,000 | 12,008,000 | 12,333,000 | 13,257,000 |
| ROE | 4.74% | 5.03% | 10.96% | 15.45% | 3.86% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $506,000K ÷ $10,686,000K
= 4.74%
Corning Incorporated's return on equity (ROE) has displayed fluctuating trends over the past five years. Starting at a relatively low level of 3.86% on December 31, 2020, the ROE experienced a substantial increase to 15.45% by December 31, 2021. This strong performance suggests that the company efficiently utilized shareholders' equity to generate profits during that period.
However, in the following years, Corning's ROE demonstrated a downward trajectory. By December 31, 2022, the ROE decreased to 10.96%, indicating a decline in the company's ability to generate returns on equity compared to the previous year. This trend continued with ROE dropping to 5.03% by December 31, 2023, and further declining to 4.74% by December 31, 2024.
The declining ROE figures in the latter years may raise concerns about Corning's profitability and operational efficiency in utilizing shareholder investments. It is essential for the company to assess and address the factors contributing to this downward trend to improve its ROE and enhance shareholder value in the future.
Peer comparison
Dec 31, 2024