IDEX Corporation (IEX)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 596,100 | 586,900 | 449,400 | 377,800 | 425,500 |
| Total stockholders’ equity | US$ in thousands | 3,541,400 | 3,039,300 | 2,803,100 | 2,540,200 | 2,263,230 |
| ROE | 16.83% | 19.31% | 16.03% | 14.87% | 18.80% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $596,100K ÷ $3,541,400K
= 16.83%
Idex Corporation's return on equity (ROE) has exhibited some fluctuations over the past five years. The trend shows a generally positive performance, with ROE ranging from 14.87% in 2020 to 19.31% in 2022. In 2023, the ROE decreased to 16.83%, which is lower than the previous year but still above the levels seen in 2020 and 2021.
The ROE indicates how effectively the company is generating profits from the shareholders' equity. A higher ROE suggests that the company is efficiently utilizing the equity capital to generate profits. In the case of Idex Corporation, the ROE has generally been at a satisfactory level, indicating that the company is effectively utilizing its equity to generate returns for its shareholders.
It is important for investors and stakeholders to closely monitor the ROE trend to assess the company's profitability relative to the shareholders' equity. The fluctuations in ROE over the years highlight the need for further analysis to understand the factors influencing the company's profitability and equity utilization.
Peer comparison
Dec 31, 2023