Hexcel Corporation (HXL)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 132,100 | 105,700 | 126,300 | 16,100 | 31,700 |
| Total stockholders’ equity | US$ in thousands | 1,527,900 | 1,716,500 | 1,554,200 | 1,485,500 | 1,510,200 |
| ROE | 8.65% | 6.16% | 8.13% | 1.08% | 2.10% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $132,100K ÷ $1,527,900K
= 8.65%
Based on the provided data, Hexcel Corporation's return on equity (ROE) has exhibited fluctuations over the period from December 31, 2020, to December 31, 2024.
The ROE for Hexcel Corporation stood at 2.10% as at December 31, 2020, showing a moderate return relative to shareholders' equity. However, there was a decline in ROE to 1.08% as at December 31, 2021, indicating a decrease in the profitability of the company relative to its equity base.
The trend then reversed, with a significant improvement in ROE to 8.13% as at December 31, 2022, signaling a stronger return generated from the shareholders' equity. This positive momentum was sustained in the following year, with ROE at 6.16% as at December 31, 2023, reflecting continued profitability relative to the equity invested in the company.
The most recent data point shows a further increase in ROE to 8.65% as at December 31, 2024, indicating an even higher return generated from shareholders' equity compared to the previous year. This suggests that Hexcel Corporation has been able to enhance its efficiency in utilizing equity capital to generate profits.
Overall, the fluctuating trend in Hexcel Corporation's ROE over the period indicates varying levels of profitability and efficiency in utilizing shareholders' equity. Further analysis of the company's financial performance and strategic decisions would be needed to understand the factors driving these fluctuations in ROE.
Peer comparison
Dec 31, 2024