International Flavors & Fragrances Inc (IFF)
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 | 243,000 | -2,321,000 | -2,355,000 | -2,498,000 | -2,566,000 | 47,000 | -2,174,000 | -2,094,000 | -1,842,000 | -1,755,000 | 635,000 | 556,000 | 270,000 | 247,589 | 139,281 | 195,779 | 362,386 | 378,340 | 419,772 | 471,651 |
| Total stockholders’ equity | US$ in thousands | 28,667,000 | 14,775,000 | 14,254,000 | 14,291,000 | 14,611,000 | 17,009,000 | 17,655,000 | 17,790,000 | 17,734,000 | 16,921,000 | 20,260,000 | 20,933,000 | 21,118,000 | 21,426,000 | 21,761,000 | 21,642,000 | 6,323,040 | 6,078,210 | 5,987,800 | 5,840,670 |
| ROE | 0.85% | -15.71% | -16.52% | -17.48% | -17.56% | 0.28% | -12.31% | -11.77% | -10.39% | -10.37% | 3.13% | 2.66% | 1.28% | 1.16% | 0.64% | 0.90% | 5.73% | 6.22% | 7.01% | 8.08% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $243,000K ÷ $28,667,000K
= 0.85%
International Flavors & Fragrances Inc's return on equity (ROE) has shown a declining trend over the observed period from March 31, 2020, to December 31, 2024. The ROE declined from 8.08% in March 2020 to -15.71% in September 30, 2024, before slightly improving to 0.85% by December 31, 2024.
The ROE measures the company's efficiency in generating profits from the shareholders' equity. A positive ROE is generally preferred as it indicates the company is generating profits from its equity resources, while a negative ROE implies that the company is incurring losses relative to its equity.
The decreasing trend in ROE for International Flavors & Fragrances Inc indicates a decline in profitability relative to its equity base during the period under review. This may be a cause for concern as it suggests the company's ability to generate returns for its shareholders has been diminishing over time. Further analysis and investigation into the company's financial performance and management of assets and liabilities may be warranted to address the declining ROE trend.
Peer comparison
Dec 31, 2024