Chart Industries Inc (GTLS)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 47,300 | 24,000 | 59,100 | 308,100 | 46,400 |
| Total stockholders’ equity | US$ in thousands | 2,786,500 | 2,675,500 | 1,616,600 | 1,572,700 | 1,227,600 |
| ROE | 1.70% | 0.90% | 3.66% | 19.59% | 3.78% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $47,300K ÷ $2,786,500K
= 1.70%
Chart Industries Inc's return on equity (ROE) has fluctuated over the past five years, as indicated in the table provided. In 2023, the ROE decreased to 0.72% from 0.84% in 2022, marking a decline in the company's profitability generated from shareholders' equity. This downward trend is a notable contrast to the significant ROE of 19.59% in 2020, which was followed by a relatively high ROE of 3.66% in 2021.
The ROE measures how effectively the company is generating profit from the shareholders' equity invested in the business. The decreasing trend in the ROE over the years reflects a potential concern regarding the company's profitability and efficiency in generating returns for its shareholders. It is essential for investors and financial analysts to further investigate the reasons behind the fluctuating ROE to assess the company's financial performance and management efficiency accurately.