Hexcel Corporation (HXL)

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 132,100 108,100 107,000 99,500 105,700 160,900 149,000 151,200 126,300 108,200 90,400 47,900 16,100 -22,200 -21,500 -24,700 31,700 124,300 194,900 276,800
Total stockholders’ equity US$ in thousands 1,527,900 1,589,500 1,571,200 1,632,100 1,716,500 1,646,300 1,666,100 1,622,200 1,554,200 1,445,000 1,480,300 1,487,100 1,485,500 1,494,300 1,502,800 1,486,900 1,510,200 1,499,400 1,436,900 1,421,100
ROE 8.65% 6.80% 6.81% 6.10% 6.16% 9.77% 8.94% 9.32% 8.13% 7.49% 6.11% 3.22% 1.08% -1.49% -1.43% -1.66% 2.10% 8.29% 13.56% 19.48%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $132,100K ÷ $1,527,900K
= 8.65%

Hexcel Corporation's return on equity (ROE) has shown fluctuations over the past few years. The ROE was relatively strong at the beginning of the period, peaking at 19.48% as of March 31, 2020. However, it started declining steadily from June 2020 to March 2021, entering negative territory. This could indicate declining profitability relative to shareholders' equity during that period.

From March 2021 onwards, the ROE began to recover gradually, showing positive growth trends. This improvement continued through December 2024, reaching a ROE of 8.65% as of December 31, 2024. Although there were fluctuations during this period, the overall trend indicates a positive trajectory in Hexcel Corporation's return on equity.

It is important for investors and stakeholders to closely monitor Hexcel Corporation's ROE, as it is a key metric indicating the company's efficiency in generating profits from shareholders' equity. The recent positive trend in ROE suggests potential improvements in Hexcel Corporation's profitability and efficiency in utilizing its equity.