Huntington Ingalls Industries Inc (HII)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 550,000 | 701,000 | 748,000 | 705,000 | 681,000 | 530,000 | 520,000 | 568,000 | 579,000 | 576,000 | 585,000 | 536,000 | 544,000 | 673,000 | 748,000 | 672,000 | 696,000 | 596,000 | 528,000 | 603,000 |
| Total stockholders’ equity | US$ in thousands | 4,666,000 | 4,203,000 | 4,178,000 | 4,126,000 | 4,093,000 | 3,733,000 | 3,646,000 | 3,563,000 | 3,489,000 | 3,048,000 | 2,952,000 | 2,822,000 | 2,808,000 | 2,189,000 | 2,067,000 | 1,979,000 | 1,901,000 | 1,880,000 | 1,678,000 | 1,643,000 |
| ROE | 11.79% | 16.68% | 17.90% | 17.09% | 16.64% | 14.20% | 14.26% | 15.94% | 16.60% | 18.90% | 19.82% | 18.99% | 19.37% | 30.74% | 36.19% | 33.96% | 36.61% | 31.70% | 31.47% | 36.70% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $550,000K ÷ $4,666,000K
= 11.79%
Huntington Ingalls Industries Inc's Return on Equity (ROE) has shown varying trends over the past few years, with fluctuations observed in quarterly ROE figures. The ROE was relatively high in early 2020, reaching a peak of 36.70% in March 2020. Subsequently, the ROE declined in the following quarters but remained above 30% until December 2021.
However, the trend shifted in 2022, as the ROE started to decrease more noticeably. The ROE dropped to around 18-19% in the first half of 2022 and continued to decline steadily, reaching a low of 11.79% by December 2024.
This downward trend in ROE indicates a potentially decreasing profitability relative to shareholders' equity over time, which could be a cause for concern for investors and stakeholders. It would be important for the company to assess the factors contributing to this trend and take necessary actions to improve its profitability and efficiency in generating returns for its shareholders.
Peer comparison
Dec 31, 2024