Huntington Ingalls Industries Inc (HII)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 681,000 | 579,000 | 544,000 | 696,000 | 549,000 |
| Total stockholders’ equity | US$ in thousands | 4,093,000 | 3,489,000 | 2,808,000 | 1,901,000 | 1,588,000 |
| ROE | 16.64% | 16.60% | 19.37% | 36.61% | 34.57% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $681,000K ÷ $4,093,000K
= 16.64%
Huntington Ingalls Industries Inc's return on equity (ROE) has shown a declining trend over the past five years, dropping from 34.57% in December 2019 to 16.64% in December 2023. This indicates that the company's ability to generate profits from its shareholders' equity has weakened. The ROE of 16.64% in 2023 is below the levels seen in the previous years, suggesting potential inefficiencies in the utilization of equity. Further analysis of the company's operations and financial strategies may be warranted to address this declining trend in ROE.
Peer comparison
Dec 31, 2023
Company name
Symbol
ROE
Huntington Ingalls Industries Inc
HII
16.64%
General Dynamics Corporation
GD
15.56%