Warrior Met Coal Inc (HCC)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 250,603 | 478,629 | 641,298 | 150,881 | -35,761 |
| Total stockholders’ equity | US$ in thousands | 2,090,820 | 1,874,450 | 1,447,520 | 871,983 | 725,241 |
| ROE | 11.99% | 25.53% | 44.30% | 17.30% | -4.93% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $250,603K ÷ $2,090,820K
= 11.99%
Warrior Met Coal Inc's return on equity (ROE) has shown significant variability over the past five years. Starting at a negative 4.93% on December 31, 2020, the company managed to turn its performance around and achieve a positive ROE of 17.30% by December 31, 2021. The upward trend continued as ROE further increased to 44.30% by December 31, 2022, indicating improved profitability and efficiency in generating returns for its shareholders.
However, there was a slight decline in ROE to 25.53% by December 31, 2023, which may warrant further analysis to understand the factors contributing to this decrease. Finally, by December 31, 2024, Warrior Met Coal Inc's ROE decreased further to 11.99%, which suggests a potential challenge in sustaining the high levels of profitability seen in the previous years.
Overall, Warrior Met Coal Inc's ROE performance indicates a mix of successes and potential areas for improvement, emphasizing the importance of monitoring and analyzing this key financial metric to assess the company's profitability and efficiency in generating returns for its shareholders.
Peer comparison
Dec 31, 2024