International Seaways Inc (INSW)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 416,724 556,446 387,891 -134,660 -5,531
Total stockholders’ equity US$ in thousands 1,856,050 1,716,760 1,487,750 1,133,690 972,042
ROE 22.45% 32.41% 26.07% -11.88% -0.57%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $416,724K ÷ $1,856,050K
= 22.45%

International Seaways Inc's return on equity (ROE) experienced significant fluctuations over the past five years.

At the end of 2020, the company had a negative ROE of -0.57%, indicating that the company's net income was not sufficient to generate a positive return for its shareholders. This negative ROE was a concerning sign for investors.

However, by the end of 2021, the ROE deteriorated further to -11.88%, indicating worsened performance in generating profits relative to shareholders' equity. This downward trend in ROE suggested potential operational or financial challenges facing the company during that period.

The situation changed dramatically by the end of 2022, with ROE surging to 26.07%. This significant improvement indicated that International Seaways Inc efficiently utilized its shareholders' equity to generate profits. The company managed to turn around its performance and deliver positive returns for its investors.

The positive momentum continued into 2023, with ROE reaching 32.41%. This substantial increase further underscored the company's improved profitability and effectiveness in utilizing equity to generate returns for shareholders.

Although the ROE dipped slightly by the end of 2024 to 22.45%, it remained at a healthy level, indicating that International Seaways Inc continued to deliver solid returns relative to shareholders' equity.

Overall, the significant fluctuations in ROE reflect the company's evolving financial performance, with the recent years showing a positive trend of improved profitability and shareholder value creation. Nonetheless, investors should monitor future ROE trends to assess the company's ongoing financial health and effectiveness in generating returns on equity.