Innospec Inc (IOSP)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 33,200 139,000 133,000 93,000 28,600
Total stockholders’ equity US$ in thousands 1,211,200 1,147,100 1,038,000 1,032,400 944,400
ROE 2.74% 12.12% 12.81% 9.01% 3.03%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $33,200K ÷ $1,211,200K
= 2.74%

Innospec Inc's return on equity (ROE) has displayed fluctuating trends over the years based on the provided data. In December 2020, the ROE stood at a relatively low 3.03%, indicating that the company generated a modest return relative to its equity base during that period.

There was a notable improvement in the ROE by December 2021, reaching 9.01%, signifying a significant increase in the company's profitability and efficiency in generating earnings from shareholder equity.

By December 2022, the ROE further improved to 12.81%, indicating that the company was more effective in using its equity to generate profits for its shareholders. This substantial increase suggests that Innospec Inc's operations and financial management were performing well during this period.

Although there was a slight decrease in the ROE to 12.12% by December 2023, the figure remained relatively high compared to previous years, indicating that the company continued to create value for shareholders through efficient utilization of equity.

However, there was a notable decline in the ROE by December 2024, dropping to 2.74%. This significant decrease may raise concerns about the company's ability to generate returns for shareholders or efficiently allocate its equity resources during that period.

In summary, the trend in Innospec Inc's ROE indicates fluctuations in the company's ability to generate returns relative to shareholder equity. It is essential for stakeholders to closely monitor these fluctuations to assess the company's performance and management of equity resources effectively.