Huntington Ingalls Industries Inc (HII)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 550,000 | 681,000 | 579,000 | 544,000 | 696,000 |
| Total stockholders’ equity | US$ in thousands | 4,666,000 | 4,093,000 | 3,489,000 | 2,808,000 | 1,901,000 |
| ROE | 11.79% | 16.64% | 16.60% | 19.37% | 36.61% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $550,000K ÷ $4,666,000K
= 11.79%
From the provided data, we observe a declining trend in Huntington Ingalls Industries Inc's Return on Equity (ROE) over the past five years. The ROE decreased from 36.61% as of December 31, 2020, to 19.37% as of December 31, 2021. This was followed by a further decrease to 16.60% as of December 31, 2022, and a slight increase to 16.64% as of December 31, 2023. The ROE then experienced another decline to 11.79% by December 31, 2024.
The decreasing trend in ROE indicates that the company's profitability in generating returns for its shareholders relative to its equity has been weakening over time. A high ROE is generally a positive indicator of a company's efficient use of equity capital, while a declining ROE may signal operational challenges or inefficiencies within the business.
It would be advisable for stakeholders and investors to further investigate the factors contributing to the declining ROE trend and assess the company's strategies for improving profitability and shareholder value in the future.
Peer comparison
Dec 31, 2024