International Flavors & Fragrances Inc (IFF)

Return on equity (ROE)

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income US$ in thousands -2,567,000 -1,871,000 270,000 363,228 455,873
Total stockholders’ equity US$ in thousands 14,611,000 17,655,000 21,082,000 6,310,000 6,217,300
ROE -17.57% -10.60% 1.28% 5.76% 7.33%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-2,567,000K ÷ $14,611,000K
= -17.57%

International Flavors & Fragrances Inc. has shown a declining trend in return on equity (ROE) over the past five years. The ROE was negative in both 2022 and 2023, indicating that the company's net income was insufficient to cover shareholders' equity. This could be a concerning sign as it suggests the company may not be effectively utilizing its equity to generate profits for shareholders.

In 2021, the ROE was positive but relatively low at 1.27%, showing a modest profitability relative to shareholders' equity. The ROE was higher in 2020 and 2019 at 5.78% and 7.28% respectively, indicating a better return on equity in those years compared to the more recent ones.

Overall, International Flavors & Fragrances Inc. has experienced fluctuations in ROE, with a general declining trend in recent years, raising potential concerns about the company's ability to generate sufficient profits from shareholders' equity. Management may need to reevaluate its strategies to improve profitability and enhance shareholder value in the future.


Peer comparison

Dec 31, 2023