Green Plains Renewable Energy Inc (GPRE)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -82,497 | -93,384 | -127,218 | -65,992 | -108,775 |
| Total stockholders’ equity | US$ in thousands | 865,215 | 843,733 | 910,031 | 950,500 | 646,852 |
| ROE | -9.53% | -11.07% | -13.98% | -6.94% | -16.82% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-82,497K ÷ $865,215K
= -9.53%
The return on equity (ROE) of Green Plains Renewable Energy Inc has shown a declining trend over the past five years. The ROE was -16.82% as of December 31, 2020, and decreased to -6.94% by December 31, 2021. However, the trend reversed temporarily in 2022 with ROE dropping further to -13.98%. The negative trajectory continued in 2023 with ROE at -11.07% and improved slightly to -9.53% by December 31, 2024.
The consistently negative ROE values indicate that the company's profitability in relation to its shareholder's equity has been in decline. This may be attributed to factors such as low profitability, high financial leverage, or inefficient use of equity capital. Green Plains Renewable Energy Inc may need to evaluate and address the underlying issues affecting its ROE in order to enhance returns for its shareholders and improve overall financial performance.
Peer comparison
Dec 31, 2024