Hexcel Corporation (HXL)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	105,700	126,300	16,100	31,700	306,600
Total stockholders’ equity	US$ in thousands	1,716,500	1,554,200	1,485,500	1,510,200	1,446,100
ROE		6.16%	8.13%	1.08%	2.10%	21.20%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $105,700K ÷ $1,716,500K
= 6.16%

Hexcel Corp.'s return on equity (ROE) has displayed significant volatility over the past five years. In 2019, the company achieved a notably high ROE of 21.20%, but this figure decreased substantially in 2020 to 2.10%. The ROE further declined in 2021 to 1.08%, reflecting a continued trend of diminished profitability. However, the company improved its ROE in 2022 to 8.13%, indicating a positive performance recovery. Despite this improvement, Hexcel Corp. experienced a slight decrease in ROE to 6.16% in 2023. Overall, the fluctuating ROE values suggest inconsistencies in the company's ability to generate returns for its shareholders, highlighting the need for further analysis of its financial performance and operational efficiency.