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