Warrior Met Coal Inc (HCC)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 478,629 | 641,298 | 150,881 | -35,761 | 301,699 |
| Total stockholders’ equity | US$ in thousands | 1,874,450 | 1,447,520 | 871,983 | 725,241 | 765,582 |
| ROE | 25.53% | 44.30% | 17.30% | -4.93% | 39.41% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $478,629K ÷ $1,874,450K
= 25.53%
Warrior Met Coal Inc's return on equity (ROE) has shown fluctuating trends over the past five years. In 2023, the ROE decreased to 25.53% from 44.30% in 2022, indicating a decline in the company's ability to generate profit from shareholders' equity. The substantial drop in ROE can signal potential issues with the company's efficiency in utilizing its equity to generate profits.
Comparing the ROE in 2023 to that in 2021 and 2020, the current ROE of 25.53% appears relatively stronger, showcasing an improvement in the company's profitability compared to those years. However, the ROE remains below the level seen in 2019, where it stood at a robust 39.41%.
It is essential for Warrior Met Coal Inc to further analyze the factors contributing to the fluctuation in ROE to ensure sustainable financial performance and maximize returns for shareholders in the future.
Peer comparison
Dec 31, 2023