International Flavors & Fragrances Inc (IFF)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 243,000 | -2,565,000 | -1,836,000 | 268,000 | 365,000 |
| Total stockholders’ equity | US$ in thousands | 13,876,000 | 14,611,000 | 17,734,000 | 21,118,000 | 6,323,040 |
| ROE | 1.75% | -17.56% | -10.35% | 1.27% | 5.77% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $243,000K ÷ $13,876,000K
= 1.75%
The return on equity (ROE) of International Flavors & Fragrances Inc has shown a declining trend over the years, starting at 5.77% on December 31, 2020, and decreasing to 1.27% by December 31, 2021. The ROE continued to deteriorate further, reaching -10.35% by December 31, 2022, and declining even more to -17.56% by December 31, 2023.
During those years, the company's ability to generate profit from shareholders' equity decreased significantly, indicating potential inefficiencies in its operations or financial management. However, there was a slight improvement in the ROE by December 31, 2024, with a return of 1.75%, although it still remains relatively low compared to the initial levels.
Overall, the fluctuating and decreasing trend in International Flavors & Fragrances Inc's ROE suggests challenges in optimizing profitability relative to the shareholders' equity invested in the company during the specified period.
Peer comparison
Dec 31, 2024