Hasbro Inc (HAS)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -1,489,300 | 203,500 | 428,700 | 222,500 | 520,500 |
| Total stockholders’ equity | US$ in thousands | 1,087,000 | 2,861,900 | 3,087,000 | 2,961,100 | 2,995,530 |
| ROE | -137.01% | 7.11% | 13.89% | 7.51% | 17.38% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-1,489,300K ÷ $1,087,000K
= -137.01%
Hasbro, Inc.'s return on equity (ROE) has shown significant fluctuations over the past five years. The ROE decreased sharply to a negative 140.25% as of December 31, 2023, indicating that the company's net income was insufficient to cover its shareholders' equity, resulting in a substantial loss. In contrast, the ROE was positive in the preceding years, with the highest ROE of 17.37% recorded on December 29, 2019.
The 2023 negative ROE suggests that Hasbro faced challenges in generating profits or had high levels of debt relative to equity during that period. It is crucial for Hasbro to address the causes of this negative ROE and work towards improving profitability and financial stability to enhance shareholder returns in the future. Additionally, comparing the ROE to industry benchmarks and analyzing the company's financial performance in more detail would provide further insights into Hasbro's overall financial health and efficiency in utilizing shareholders' equity.