Harley-Davidson Inc (HOG)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 706,586 | 741,408 | 650,024 | 1,298 | 423,635 |
| Total stockholders’ equity | US$ in thousands | 3,252,810 | 2,903,520 | 2,553,240 | 1,722,780 | 1,804,000 |
| ROE | 21.72% | 25.53% | 25.46% | 0.08% | 23.48% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $706,586K ÷ $3,252,810K
= 21.72%
Harley-Davidson, Inc.'s return on equity (ROE) has shown variability in recent years. The ROE stood at 21.72% in 2023, a decrease from the previous year's 25.53% but still relatively healthy. In 2020, the ROE was significantly lower at 0.08%, showing a notable drop in profitability during that period. However, the company managed to improve its ROE to 25.46% in 2021 and 23.48% in 2019.
Overall, Harley-Davidson’s ROE performance indicates fluctuations in the company's ability to generate profits relative to shareholders' equity. The recent decrease in 2023 compared to 2022 may raise concerns, but it is crucial to analyze the company's financial strategies and business performance to understand the factors driving these changes and assess the sustainability of its profitability in the future.
Peer comparison
Dec 31, 2023